Al Ahli... A Strong Capital Center and a Solid Foundation for Sustained Growth

The Kuwait National Bank Group held its analysts’ conference on the results for the first half of 2026, with participation from Group Chief Executive Officer Gilles Jean van der Tol, Chief Financial Officer Shyamak Sunawala, Head of Strategic Planning and Follow-up Dr. Abdulaziz Jawad, and Assistant General Manager of Strategic Planning and Follow-up Osama Ezzeldin, to outline the financial indicators recorded during the first half of 2026 and the Group’s future strategic plans.

Speaking on the occasion, Van der Tol said: “Kuwait National Bank delivered a strong performance in the first half, strengthening the foundations for long-term growth despite ongoing regional uncertainty. This reflects our resilience, the quality of our earnings, and our ability to execute our plans consistently in line with our strategic objectives.”

He added: “Our results reflect strong momentum across all sectors. We achieved solid profit growth, further strengthened our balance sheet and asset quality, and maintained a strong capital position. We also enhanced our standing in financing activities while maintaining a disciplined approach to risk management. Collectively, these achievements reinforce the robustness of our business model and provide a strong platform for future growth.”

He noted that net profit attributable to shareholders rose by 16.9% year-on-year to KD 37.1 million, while earnings per share increased by 9% to 12 fils. This performance was driven by strong revenue growth and disciplined cost management. He highlighted the strengthening of the balance sheet through increases in credit loans and deposits, alongside further reinforcement of the bank’s capital position. The Common Equity Tier 1 (CET1) ratio stood at 12.60%, and the non-performing loans ratio was 1.25%. He emphasized that these results collectively demonstrate the strength of the Group’s core banking business and the quality of its earnings.

He added: “We continued to strengthen our balance sheet in tandem with business growth. Our non-performing loans ratio improved to 1.25%, compared to 1.35% in June 2025, reflecting disciplined underwriting and prudent portfolio management. At the same time, we maintained a strong capital position, with the CET1 ratio reaching 12.60% and the total capital adequacy ratio at 18.03%, providing the strong financial capacity and flexibility needed to support our future growth ambitions.”

Van der Tol revealed that the Central Bank of Kuwait had approved an increase in the bank’s certificate of deposit program from USD 500 million to USD 1.5 billion. This approval represents a key strategic milestone, significantly enhancing the Group’s funding flexibility, diversifying funding sources, and supporting the next phase of its growth strategy.

He noted that this comes as Moody’s reaffirmed Kuwait National Bank’s rating at “A2” with a stable outlook, while Fitch maintained its rating at “A” with a stable outlook, underscoring the strength of the balance sheet and the consistency of the bank’s financial performance.

He stated: “The bank’s institutional strength is a key differentiator, supported by an experienced leadership team and a talented workforce. Our human capital remains a core competitive advantage. We continue to strengthen the Group’s work environment, with Kuwaitis holding approximately 70% of leadership positions and women comprising 41% of our total workforce. These indicators reflect our commitment to developing local talent and comprehensively enhancing our work environment.”

He revealed an update to the group’s strategy, focusing on refining its strategic priorities to seize new opportunities across its business segments in line with its operational model, thereby strengthening its competitive position and creating sustainable, long-term value for shareholders. He noted that the Kuwaiti banking sector continued to benefit from prudent regulation, strong liquidity, and adequate capital adequacy levels, despite an uncertain regional operating environment driven by geopolitical uncertainty and market volatility.

Van der Tol expressed optimism about the second half of 2026. Although geopolitical developments still require caution, the group’s strong capital position, diversified funding profile, high asset quality, and disciplined execution of plans provide a solid foundation for continued growth.

For his part, Shyamak Sunawala stated, “Our results for the first half of the year demonstrate the continued strength of our financial performance, supported by robust revenue growth, disciplined balance sheet management, and ongoing improvement in asset quality. This generally reflects the strength and resilience of the National Bank of Kuwait brand, as we achieved strong growth in key financial metrics while further enhancing the quality of our loan portfolio, maintaining capital and liquidity strength, and further bolstering our financial resilience to navigate turbulent conditions.”

Sunawala highlighted that net profit attributable to shareholders rose by 17% year-on-year to KD 37.1 million, while earnings per share increased by 9% to 12 fils. Return on average equity improved by 81 basis points to reach 10%, reflecting higher profitability, disciplined capital distribution, and group earnings flexibility.

He added, “Operating income grew by 9.5% year-on-year to KD 119.2 million, primarily driven by a 14.6% increase in net interest income. This reflected lower funding costs and an improved funding mix, which contributed to a 34-basis-point expansion in the net interest margin to 2.54%. These indicators contributed to an 8% increase in operating profit to KD 67.9 million, underscoring the strength of our operational performance.”

He noted that the cost-to-income ratio remained well-controlled at 43.1%. “Although this is 90 basis points higher year-on-year, it continued its downward trajectory from 43.8% at the end of 2025.”

He stated, “Our capital adequacy ratios remained strong, with the total capital adequacy ratio reaching 18.03% and the Common Equity Tier 1 (CET1) ratio at 12.60%, both comfortably above regulatory minimums. This provides the capacity to support future growth. Additionally, the non-performing loan ratio improved to 1.25% from 1.35% in June 2025, reflecting disciplined underwriting, prudent portfolio management, and proactive credit monitoring.”

Sunawala concluded, “The provision coverage ratio remained strong at 340%, with loan provisions maintained in accordance with Central Bank of Kuwait directives that exceed IFRS 9 requirements by KD 196 million, providing a robust buffer against any adverse credit developments.”

He revealed that total assets rose by 5% to KD 7.3 billion, with net loans and advances growing by 7.8% to KD 4.9 billion, and customer deposits increasing by 6.5% to KD 4.3 billion since December 2025. This aligns with the Group’s disciplined, risk-adjusted approach to growth, underpinned by the strength of its franchise and continued customer confidence. He noted that liquidity metrics remained robust, with a liquidity coverage ratio of 247% and a net stable funding ratio of 120%, both comfortably above regulatory requirements.

For his part, Dr. Abdulaziz Jawad reported that the bank continued to focus on the disciplined execution of its strategic plans across its core business segments. Through its Corporate Banking division, it further optimized its portfolio by expanding its low-cost deposit base and placing greater emphasis on higher-yield customer relationships, measures that helped enhance returns on capital.

Dr. Jawad said, “We continued to strengthen our Retail Banking services network in Kuwait, focusing on the segment of Kuwaiti national and expatriate employees. This reflects our disciplined approach to attracting high-quality customers while maintaining prudent lending standards. Additionally, we are developing our artificial intelligence capabilities, enhancing customer engagement, improving operational efficiency, and strengthening our digital capabilities across the Group.”

He added, “The Retail Banking team in the UAE made progress on the ‘Jaywan’ initiative, approved by the Central Bank of the United Arab Emirates. This initiative aims to establish a local payment gateway alongside global Visa and Mastercard cards. We have completed our internal operational readiness to issue Jaywan debit cards and support local payment transactions through the Jaywan payment network.”

He further stated, “Through ABK Wealth Management, we further enhanced our investment platform via our strategic partnership with Barings, a global leader in alternative asset management with approximately USD 48.1 billion in assets. We also launched a US dollar money market fund.”

He noted that these initiatives supported strong business momentum, with the customer base growing by nearly 50% and managed assets increasing by approximately 30% year-on-year.

Dr. Jawad said, “Our strategy for the next five years focuses on launching the next phase of growth for Kuwait Finance House, by accelerating profitable organic growth while selectively pursuing external opportunities that generate added value. Our focus is increasingly on delivering sustainable value to shareholders and achieving higher returns on equity through balanced growth in Kuwait, the UAE, and Egypt, supported by disciplined capital allocation and investments in our strategic capabilities.”