Kuwait Finance House (KFH) Invest earns KD 1.5 million in 9 months

Kuwait Investment Company (KIC) announced its financial results for the period ending September 30, 2026. During the first nine months, the company reported net profits of 1.5 million Kuwaiti dinars (earnings per share: 4.43 fils), compared to net profits of 7.9 million dinars (earnings per share: 23.07 fils) during the same period last year. The positive performance in the second and third quarters helped offset losses recorded in the first quarter due to a significant downturn in financial markets.

Despite ongoing geopolitical uncertainty, weak market sentiment, and slowing economic activity, the company achieved strong growth in fee and commission revenues, which rose by 19.3% to reach 13.7 million dinars, compared to 11.5 million dinars during the first nine months of 2025. Fee and commission revenues accounted for 81.4% of total revenues, which amounted to 16.9 million dinars. The company continued to enhance its operational efficiency, with general and administrative expenses decreasing by 12.9% to 13.6 million dinars, compared to the same period in 2025.

This period witnessed a noticeable deterioration in the macroeconomic environment due to escalating regional tensions, which negatively impacted global trade flows and investor sentiment. Additionally, the temporary closure of the Strait of Hormuz, along with broader challenges related to supply chains and logistics, increased uncertainty regarding energy exports and economic growth prospects in the region. The sharp rise in crude oil prices also contributed to higher inflation rates, prompting global central banks to reconsider their interest rate cut policies, with growing expectations of rate hikes.

Gulf Cooperation Council (GCC) markets were directly affected, given the region’s pivotal role in global energy and petrochemical supplies. Disruptions in oil exports, rising production costs, and unclear economic activity prospects negatively impacted investor confidence and liquidity levels.

KIC continued to strengthen its strategic relationship with Bank of Kuwait and the Middle East (BKM), contributing to providing a broader and more integrated range of financial services to clients. Accordingly, the company’s board of directors proposed in September changing the company’s name from “Kuwait Investment Company” to “BKM Capital Investment.” The General Assembly meeting held on Sunday, November 8, 2026, approved this proposal.

The value of assets under management reached $17.3 billion as of September 30, 2026, representing a growth rate of 4.6% since the beginning of the year, thereby maintaining its position among the top ten asset managers in the Middle East and North Africa (MENA) region. Forbes Middle East magazine ranked the company among the leading asset managers in the region for 2026, recognizing its impressive track record and deep expertise in delivering diverse investment solutions that meet client needs.

Managed portfolios in equities and fixed income continued to outperform their respective benchmarks. The company’s equity funds maintained their competitive position, with the KIC Investment Fund winning the Lipper Fund Awards 2026, issued by the London Stock Exchange Group (LSEG), in six categories, in recognition of its outstanding performance over three, five, and ten-year periods.

In the alternative investments sector, which includes real estate, private equity, and structured products, the team continued to expand and diversify the investment solutions offered to clients. KAMCO Invest signed a partnership agreement worth 300 million euros with Santander Alternative Investments to provide Sharia-compliant, income-generating investment opportunities in European private real estate financing for investors in the Gulf region. Additionally, the team commenced executing capital calls for the co-managed leasing strategy in partnership with Folksam Invest, an affiliate of New York Life Investment Management.

The banking investments team continued to provide advisory services to a number of clients on various transactions across equity capital markets, debt instruments markets, and mergers and acquisitions, with expectations of closing further deals in the remainder of the year. The team successfully managed five debt market issuances with a total value exceeding $1.5 billion, and played a prominent role in the financial restructuring of the Diggit Group, while acting as the bookrunner and underwriting agent for a capital increase that was successfully completed with demand exceeding 21 times the size of the offered shares, at a total value surpassing 127 million dinars.

Al-Awaniya for Financial Brokerage, the firm’s brokerage arm, continued to strengthen its competitive position and succeeded in attracting new clients from institutions and individuals, leveraging its electronic trading services.

The company maintains a strong financial position, with total shareholders’ equity attributable to the parent company’s shareholders reaching 67.5 million dinars as of September 30, 2026. Capital Intelligence Ratings maintained the company’s long-term credit rating at BBB and its short-term rating at A3, with a stable outlook.

Commenting on the results, Chairman Sheikh Talal Al-Ali said: “The company continued to generate profits during the third quarter, reflecting the robustness of its business model and its ability to adapt to challenges amid a difficult operating environment. The sustained growth in fee and recurring commission revenues underscores the quality and sustainability of our income sources, highlighting the strength of our core activities and the renewed confidence of our clients in our expertise and investment capabilities.”

For his part, CEO Faisal Mansour Sarakhou said: “We continue to record growth in fee and commission revenues, reflecting the strength of our core activities and the quality of our income sources, despite the challenges posed by the operating environment and the slowdown in economic activity. We also continued to implement cost rationalization programs efficiently, achieving a double-digit percentage reduction in operating expenses, thereby enhancing performance efficiency and supporting profit sustainability.”

He added: “In the coming phase, we look forward to further strengthening our strategic relationship with Boubyan Bank, leveraging the synergy between the two institutions to expand our customer base and enhance their access to a broader range of financial and investment products and services. We will also continue to solidify our partnerships with a select group of global investment managers, contributing to the development of our investment platform and providing diverse, high-quality investment opportunities that meet our clients’ aspirations and deliver sustainable value.”