Kuwait Finance House: 523.4 Million KD Net Profit

Hamad Abdulmohsin Al-Marzouq, Chairman of the Board at Kuwait Finance House (KFH), announced that the bank achieved net profit attributable to shareholders of 523.4 million Kuwaiti dinars through the end of the third quarter of 2026, representing a growth rate of 6.2% compared to the same period last year, marking the highest profits in the Kuwaiti banking sector. Earnings per share reached 27.56 fils through the end of the third quarter of 2026, up 5.4% compared to the same period last year. Net financing revenues rose to 989.5 million Kuwaiti dinars through the end of the third quarter of 2026, reflecting a 4.8% increase compared to the corresponding period last year. Total operating revenues also increased through the end of the third quarter of 2026, supported by growth across all major activities, reaching 1,452.2 million Kuwaiti dinars, a 6.7% rise compared to the same period last year. As a result of expense control and cost rationalization, total operating expenses declined by 3.0% compared to the same period last year. Consequently, net operating revenues reached 1,004.7 million Kuwaiti dinars through the end of the third quarter of 2026, achieving an 11.7% growth rate. Due to the increase in total operating revenues and the decrease in total operating expenses, the cost-to-income ratio improved to 30.8% through the end of the third quarter of 2026, down from 33.9% during the corresponding period last year. Financing receivables stood at approximately 23.4 billion Kuwaiti dinars at the end of the third quarter of 2026, up 7.5% compared to the end of the previous year, while total assets reached 43.8 billion Kuwaiti dinars, a 2.4% increase compared to the end of the previous year. Total shareholders’ equity amounted to 5.7 billion Kuwaiti dinars at the end of the third quarter of the current year. Customer deposits stood at approximately 22.7 billion Kuwaiti dinars through the end of the third quarter of 2026, up 7.8% compared to the end of the previous year. The capital adequacy ratio stood at 17.22%, exceeding regulatory requirements, reflecting the strength of the bank’s capital base.

Strategy Success

Al-Marzouq stated that KFH’s continued strong performance through the end of the third quarter of 2026 confirms the success of its established strategy and its ability to achieve sustainable and balanced growth, enhance operational efficiency, and optimize the use of resources and assets, thereby consolidating its financial position and strengthening the bank’s standing in the banking sector. He added that the sustained strong performance underscores the robustness of KFH’s business model, its flexibility in dealing with economic and geopolitical changes, alongside effective risk management and adherence to the highest governance standards. He noted that the results reflect a clear strategic approach based on responsible growth, maximizing value for shareholders and customers.

Building Sustainable Value

Al-Marzouq explained that the Group’s strategy takes a long-term perspective, aiming to build sustainable value and enhance the bank’s competitiveness and capacity for continued growth through investment in business and service development, accelerating digital transformation, improving operational efficiency, and developing human capital. He affirmed that KFH will continue to steadily implement its strategic plans, relying on its strong financial position, diversified business lines, and accumulated expertise, while maintaining a responsible growth approach and enhancing its role in supporting the national economy, thereby reinforcing the trust the bank enjoys among its shareholders, customers, and the broader community.

Improvement in the Business Environment Al-Marzouq noted that the developments witnessed in Kuwait’s business environment, along with supportive legislative and regulatory steps for economic and financial activity—such as the Real Estate Financing Law, the Sukuk Law, and previously the Law on Borrowing from the Future Generations Fund, and the Financing and Liquidity Law—represent positive factors to enhance the capacity of the private sector and financial institutions to grow and contribute to the path of economic development. He highlighted the importance of the Sukuk Law, as it enables the addition of a Sharia-compliant sovereign financing instrument, helps expand the investor base locally and internationally, and builds an Islamic sovereign yield curve that supports future corporate and financial institution issuances.

Leadership in Corporate Social Responsibility Al-Marzouq also emphasized Kuwait Finance House’s (KFH) commitment to continuing support for national initiatives and projects with strategic impact, thereby strengthening integration between state institutions and the private sector, serving the national interest, and supporting sustainable development in Kuwait. He pointed to the implementation of several strategic community and national initiatives, such as supporting the national initiative launched by the Kuwait Fund for Arab Economic Development to establish the Kuwait Emergency Response Fund, through a financial contribution of $13 million, as well as an additional contribution of $6 million to repair damaged power stations. He confirmed that KFH’s community work efforts have received high global recognition, with the bank winning the “Best Islamic Bank for Social Responsibility in the World” award for 2026 from Global Finance magazine, in recognition of its exceptional efforts, clear impact, and leadership in social responsibility within the markets and countries where it operates.

Robust Business Model For his part, Khalid Al-Shamlan, CEO of Kuwait Finance House Group, stated that the strong performance achieved by the bank through the end of the third quarter of 2026, accompanied by continued profit growth, confirms the operational efficiency and robustness of the group’s business model, and its ability to deliver strong and sustainable results, despite the economic and geopolitical conditions affecting the region and Kuwait. This performance is supported by high operational efficiency and flexibility in responding to market changes.

Diversification of Revenue Sources Al-Shamlan added that the diversification of revenue sources and the geographic distribution of the group’s operations, which extend to 10 countries worldwide through a network of over 600 branches, represent a key factor supporting performance stability and revenue enhancement, alongside the bank’s continued development of its financing and credit capabilities to meet the needs of individual and corporate customers.

Notable Digital Achievements He confirmed that Kuwait Finance House continues to achieve notable milestones in digital banking services, pointing to ongoing investment in technology and innovation aimed at enhancing customer experience, improving operational efficiency, and strengthening the ability to keep pace with rapid developments in the banking sector. He noted that the bank has provided an integrated digital transformation model based on a clear strategic vision focused on the customer and achieving tangible operational results, highlighting the execution of more than 600 million digital transactions in one year and the provision of over 200 integrated digital services via KFHonline, which has reinforced the status of digital services as a primary banking option for customers.

An outstanding performance was highlighted, noting that the bank’s exceptional performance was also reflected in its continued accumulation of international accolades and awards. Among the most prominent was its ranking as the best-performing bank in Kuwait in The Banker’s list of the Top 100 Arab Banks for 2026, alongside the group receiving Euromoney awards in the fields of wealth management, environmental, social, and governance (ESG), and digital banking. Additionally, it won the award for the best Islamic bank in the world from Global Finance magazine, and the best digital bank in Kuwait from MEED, along with numerous other global recognitions that underscore the bank’s leading international standing.

Expressions of gratitude and appreciation: Al-Shamlan expressed his appreciation for the support of the Board of Directors, commending the role of regulatory authorities in supporting the banking sector. He also praised the efforts of the executive management, all employees, and all partners and stakeholders for their fundamental role in meeting the expectations of shareholders and customers, and in preserving Kuwait Finance House’s leadership and enhancing its position locally, regionally, and globally.