The Commercial Bank earns 62.3 million Kuwaiti dinars in the first half

Kuwait Finance House announced net profits of 62.3 million Kuwaiti dinars for the first half ended June 30, 2026, compared to 60.4 million dinars for the corresponding period in 2025. Earnings per share stood at 31.6 fils for the period ended June 30, 2026 (June 30, 2025: 30.6 fils), while the Board of Directors proposed an interim cash dividend of 12 fils per share.

• Operating profits before provisions rose by 1.1% to reach 60.9 million dinars for the period ended June 30, 2026, compared to 60.3 million dinars for the same period in 2025.

• Net profits attributable to shareholders of the bank increased by 3.2% to reach 62.3 million dinars for the period ended June 30, 2026, compared to 60.4 million dinars for the same period in 2025.

• Net interest income rose by 2.0% to reach 61.2 million dinars for the period ended June 30, 2026, compared to 60.0 million dinars for the same period in 2025.

• Fee and commission income increased by 10.6% to reach 26.9 million dinars for the period ended June 30, 2026, compared to 24.3 million dinars for the same period in 2025.

• Total assets grew by 7.9% to reach 5,241.0 million dinars for the period ended June 30, 2026, compared to 4,859.0 million dinars for the same period in 2025.

• Loans and advances increased by 6.3% to reach 2,969.0 million dinars for the period ended June 30, 2026, compared to 2,791.9 million dinars for the same period in 2025.

Sheikh Ahmed Al-Duwaikh, Chairman of the Board of Directors of Kuwait Finance House, reviewed the bank’s results for the first half of 2026, noting that net profits of 62.3 million dinars reflect an increase of 1.9 million dinars, or 3.2% on a year-on-year basis. Operating profits before provisions rose by 0.6 million dinars, or 1.1%, reflecting stable performance despite regional challenges, uncertainty, and unfavorable global economic conditions. This operational performance was driven by a loan portfolio growth of 177.1 million dinars (6.3%) and a 10.6% increase in fee and commission income, which partially offset higher operating expenses and a decline in dividend income.

In response to the repercussions of geopolitical developments in the region, the Central Bank of Kuwait implemented a package of proactive stimulative measures aimed at enhancing the banking sector’s capacity to play its vital role in supporting the national economy. This package included, among other measures, easing prescribed credit limits, strengthening financing capabilities, and providing necessary liquidity to clients affected by the repercussions of the regional conflict. Notable measures included reductions in capital adequacy ratio requirements, liquidity coverage ratios, and net stable funding ratios.

Despite these relaxations, the bank’s regulatory ratios remained strong and healthy, comfortably exceeding the requirements set by the Central Bank of Kuwait. The capital adequacy ratio stood at 18.0%, the liquidity coverage ratio at 221.7%, the net stable funding ratio at 107.9%, and the leverage ratio at 10.8%.

Sheikh Ahmed Al-Sabah affirmed that the bank continues to achieve stable performance ratios despite geopolitical and economic challenges. Net interest margin reached 2.4% for the half-year ended June 30, 2026, while return on equity stood at 15.8% and return on assets at 2.4%, reflecting sound management efficiency and strong operational performance. The bank’s cost-to-income ratio of 35.1% ranks among the lowest in Kuwait.

Sheikh Ahmed Al-Sabah highlighted the bank’s rapid and advanced achievements in its digital excellence journey, bolstering its digital platforms and launching innovative customer services, underscoring its commitment to delivering a seamless and user-friendly digital banking experience.

He outlined the key achievements of “Al-Khaliji” for the period ended June 30, 2026. The bank successfully increased the volume of its multi-currency certificate of deposit program from $1 billion to $2 billion, reflecting its strong position in global capital markets and the high demand for its issuances under this program. Additionally, the bank expanded its self-service network by installing new self-service machines at several strategic locations in Kuwait, aligning with its commitment to enhancing the customer experience by facilitating access to core banking services anytime and anywhere.

In line with its efforts to engage the public and promote its banking offerings, the bank organized community outreach activities in various commercial and administrative complexes. These events served as platforms to introduce customers to the bank’s products and services, raise awareness about the importance of safeguarding financial information, and promote financial literacy across different segments of society.

Furthermore, the bank continues to develop its digital channels to enhance cybersecurity awareness. Through public engagement initiatives, it educates customers on the importance of protecting their banking information and warns them against potential fraud attempts. This effort is part of the “Let’s Be Aware” campaign, which also aims to inform customers about various types of fraud and cybercrimes, including different scam patterns targeting customers via email, text messages, phone calls, and various applications.