Al-Shumaim: Strong financial performance of Al-Bait Al-Mali confirms future growth prospects and its ability to handle challenges
Kuwait Finance House (KFH) held its analytical conference on the group’s performance and results for the first half of 2026, attended by Group Chief Executive Officer Khaled Al-Shamlan, Group Chief Financial Officer Abdul Karim Al-Samdan, and Group Head of Strategy and Acting Head of International Banking Eng. Fahd Al-Makhzoum.
Opening the session, Group CEO Khaled Al-Shamlan highlighted the bank’s financial performance, stating that the bank achieved net profits of KD 363.1 million for the first half of 2026, representing a growth rate of 6.1% compared to the same period in 2025. Earnings per share reached 18.86 fils for the first half of 2026, up 4.9% compared to the corresponding period last year.
Net financing revenues rose to KD 649.4 million in the first half of 2026, reflecting a 6.9% increase compared to the same period last year. Total operating revenues, supported by growth across all key business lines, reached KD 990.5 million, a 9.9% increase compared to the same period last year.
The cost-to-income ratio improved to 30.6% in the first half of 2026, down from 34.3% in the corresponding period last year, underscoring our commitment to efficiency and operational excellence.
Net operating revenues for the first half of the year also increased to KD 687.9 million, registering a growth of 16.2% compared to the same period last year.
The growth achieved in our financial indicators during the first half of this year reflects the group’s sustained ability to deliver balanced growth, despite rapid changes and challenges in the regional and international operating environment.
Al-Shamlan added, “KFH has continued to strengthen its financial position. Total assets reached KD 42.2 billion at the end of the first half of 2026, up 9.7% compared to the end of the same period last year. Financing receivables stood at KD 22.8 billion, an increase of 11.5% compared to the end of the first half of 2025, while customer deposits reached KD 21.6 billion, up 9.4% compared to the first half of 2025. Total shareholders’ equity amounted to approximately KD 5.8 billion, an increase of 4.2% compared to the same period last year. The capital adequacy ratio stood at 17.47%, exceeding regulatory requirements, which confirms the strength and robustness of the bank’s capital base. In line with our ongoing commitment to enhancing shareholder value, the Board of Directors recommended an interim (half-yearly) cash dividend of 10 fils per share, thereby reinforcing shareholder confidence through sustainable and long-term returns.”
Al-Shamlan said, “The bank continues to consolidate its leading position and exceptional business volume, further enhancing the group’s regional distinction. KFH ranked first locally and 12th regionally on Forbes’ list of the top 100 public companies by market capitalization. KFH’s market capitalization reached KD 14.1 billion by the end of the first half of 2026.”
He also emphasized leveraging our international network, which comprises more than 600 branches across 10 countries, to capture cross-border opportunities, finance strategic infrastructure projects, and support small and medium-sized enterprises, thereby reinforcing the bank’s position as a trusted partner in driving economic growth across all our key markets.
Al-Shamlan affirmed that the bank is translating its corporate social responsibility programs into national initiatives with tangible impact. Since 2019, the bank’s partnership with the Ministry of Justice has contributed approximately KD 61 million to assist citizens struggling to repay their debts. Furthermore, the bank has expanded its strategic partnerships with ministries overseeing education, youth affairs, health, justice, and social affairs, thereby reinforcing its role as a national partner in achieving sustainable community development. Culminating these efforts, Kuwait Finance House (KFH) was awarded “Best Islamic Bank for Corporate Social Responsibility in the World 2026” by Global Finance magazine.
Al-Shamlan stated, “Digital transformation is a cornerstone of KFH’s growth strategy. The bank’s platform currently processes over 600 million digital transactions annually, contributing to enhanced customer engagement, improved operational efficiency, and robust risk management. In this context, the bank is investing in the qualification and future-readiness of national talent, as evidenced by 100 employees obtaining specialized professional certifications through the ‘Injaz’ scholarship program.”
Looking ahead, despite recent geopolitical challenges, KFH will continue to focus on its strategic priorities: enhancing asset quality, improving financial performance and group business integration, developing digital infrastructure, and elevating the customer experience, all within a solid risk management framework. The bank is committed to maintaining its strong financial position while seizing market opportunities to drive future growth.
Concluding his remarks, Al-Shamlan said, “Our strong financial performance in the first half of 2026 reflects the effectiveness of our strategies and our ability to navigate challenges amid the rapid changes in the banking sector and the regional landscape.”
Abdul Karim Al-Samdan, Group Chief Financial Officer, stated that KFH Group’s financial performance for the first half of 2026 demonstrated strong growth in its core banking activities, highlighting key financial performance indicators.
Regarding the key financial results for the first half of 2026, Al-Samdan noted that operating income grew at a faster pace than net profit attributable to shareholders, with a portion of this growth allocated to prudent provisions. The financial position also became more productive due to the redeployment of excess liquidity.
The group’s wide geographic footprint served as a source of resilience, as the operating platform now benefits from a broader and more diversified revenue base, supported by business volume, operational efficiency, and contributions from multiple markets. Management is focused on sustaining this level of returns through disciplined financing growth, effective funding and margin management, enhanced productivity, and conservative capital allocation.
Al-Samdan pointed out that international operations accounted for 39.4% of financing and 47.4% of deposits. The key takeaway is that no single geographic market is the sole driver of the group’s profits.
He emphasized that this diversification of income sources creates sustainable value only when coupled with a highly efficient and productive operating platform, which the group pursued by reducing operating expenses by 2.1% to KD 302.7 million.
He also clarified that the balance of credit provisions is as significant as the provisions charged during the current period. The balance of expected credit losses under International Financial Reporting Standards amounted to KD 525.1 million. Meanwhile, the balance of provisions according to Central Bank of Kuwait directives stood at KD 1,029.1 million, providing a margin of KD 504.0 million.
The liquidity coverage ratio stood at 202.1%, the net stable funding ratio at 123.5%, and the financing-to-deposits ratio in Kuwait at 81.8%, compared to current regulatory requirements of 80%, 80%, and a maximum of 100%, respectively.
Furthermore, the Common Equity Tier 1 capital ratio reached 13.5%, the Tier 1 capital ratio stood at 15.7%, and the total capital adequacy ratio was 17.5%, surpassing the current requirements of 10.5%, 12.0%, and 14.0%, respectively.
He added, “We manage capital with the aim of supporting risk-adjusted return-driven growth, strengthening resilience to stress, and providing appropriate distributions. The Group maintains a cushion of approximately 350 basis points above the current minimum total capital requirement, providing the capacity to continue profitable growth.”
For his part, Eng. Fahad Khaled Al-Muhezaim, Head of Strategy for the Group and Acting Head of International Banking for the Group, outlined the key features of the economic landscape in Kuwait, as well as the strategic progress achieved by the Bank during the first half of 2026. He said, “Mid-year, the global economy continues to demonstrate its resilience. The International Monetary Fund (IMF) projects global economic growth of 3.0% in 2026 and 3.4% in 2027, accompanied by a moderation in inflation rates during 2027. Although trade growth may slow in 2026, future outlooks point to a gradual recovery supported by disciplined fiscal and monetary policies.”
Regarding economic prospects and projects in Kuwait, Al-Muhezaim stated, “The Kuwaiti economy is expected to trend toward gradual improvement following a period of calm in the first quarter, with IMF indicators pointing to a recovery in growth to reach 2.8% in 2027. Project activity serves as a key driver of this growth, following the awarding of contracts worth $2.0 billion during the second quarter, alongside a pipeline of major upcoming projects, which is driving economic activity and financing opportunities.”
On the monetary environment and the banking sector, he noted that the Central Bank of Kuwait maintained the discount rate at 3.50% during the first half of 2026. While inflation remained at moderate levels of 2.2% in June, the IMF expects average inflation to reach 2.8% for 2026.
Al-Muhezaim added, “In light of these developments, KFH has maintained its strong position, underpinned by its robust financial balance sheet, prudent risk management, diversified revenue streams, and extensive regional presence. As we enter the second half of the year, KFH Group retains the flexibility and capacity to support clients and finance the real economy.”
The Bank continued to execute its strategic priorities during the first half of the year, launching its banking services via WhatsApp, while the KFHOnline app offered more than 200 banking services. The Group also expanded its range of savings solutions tailored for education, retirement, entrepreneurship, and homeownership.
He emphasized that KFH continues to translate its digital strategy into tangible improvements in customer experience and the speed and efficiency of service delivery. In recognition of these efforts, the Bank won the “Best Digital Bank in Kuwait 2026” award from Euromoney. The Group also strengthened cooperation among its branches in Turkey, Bahrain, Egypt, and the United Kingdom by integrating technical systems and harmonizing risk policies, which contributed to expanding its financing for infrastructure, energy, and real estate development projects. Based on these achievements, the Bank won the “Best Provider of Islamic Project Finance in the World 2026” award from Global Finance.
Regarding global awards, Al-Muhezeim confirmed that Kuwait Finance House (KFH) has won more than 25 awards and rankings during the first half of the current year, in recognition of its excellence across all areas of banking operations. These include the “Best Islamic Bank in the World” award from Global Finance magazine, “Best Digital Bank in Kuwait” from MEED, “Best Private Financial Services Bank” from Euromoney, and “Best Islamic Bank for Corporate Banking in the World” from Global Finance, alongside numerous other global accolades that underscore the bank’s leading international standing.
Al-Muhezeim concluded: “The results for the first half of 2026 demonstrate strong financial solvency, operational diversification, and disciplined execution. Moving into the second half of the year, KFH is well-positioned, backed by a robust capital base, a growing digital ecosystem, and clear priorities, with a firm commitment to supporting Kuwait’s development journey and delivering maximum long-term sustainable value to shareholders.”
