62.3 million KD in Commercial Bank's net profit in the first half... up 3.2 percent
Kuwait Finance House announced net profits of 62.3 million Kuwaiti dinars for the first half of 2026, compared with 60.4 million dinars for the corresponding period in 2025, while earnings per share stood at 31.6 fils for the period ended June 30, 2026, versus 30.6 fils on June 30, 2025.
Operating profits before provisions rose 1.1 percent to 60.9 million dinars, compared with 60.3 million dinars in the same period of 2025. Net profits attributable to shareholders increased by 3.2 percent to reach 62.3 million dinars in the first half of 2026, up from 60.4 million dinars in the same period of 2025. Net interest income also rose 2 percent to 61.2 million dinars, compared with 60.0 million dinars.
Fee and commission income grew 10.6 percent to 26.9 million dinars, up from 24.3 million dinars. Total assets increased 7.9 percent to 5,241.0 million dinars, compared with 4,859.0 million dinars, while loans and advances rose 6.3 percent to 2,969.0 million dinars, compared with 2,791.9 million dinars.
Chairman of the Board of Directors Sheikh Ahmed Duaij Al-Sabah 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 percent on a year-on-year basis. Operating profits before provisions rose by 0.6 million dinars, or 1.1 percent, reflecting stable performance despite regional challenges, uncertainty, and unfavorable global economic conditions.
The operational performance was driven by a 177.1 million dinar (6.3 percent) growth in the loan portfolio and a 10.6 percent rise 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 regional conflict. Notable measures included lowering capital adequacy ratio requirements, liquidity coverage ratios, and net stable funding ratio thresholds.
Despite these relaxations, the bank’s regulatory ratios remained strong, comfortably exceeding the requirements set by the Central Bank. The capital adequacy ratio stood at 18.0 percent, the liquidity coverage ratio at 221.7 percent, the net stable funding ratio at 107.9 percent, and the leverage ratio at 10.8 percent.
Sheikh Ahmed Duaij Al-Sabah emphasized that the bank continues to achieve stable performance ratios despite geopolitical and economic challenges. Net interest margin reached 2.4 percent for the first half ended June 30, 2026, while return on equity was 15.8 percent and return on assets was 2.4 percent, reflecting management efficiency and strong operational performance. The bank’s cost-to-income ratio of 35.1 percent remains among the lowest in Kuwait.
He further noted that the bank continues to make rapid and advanced progress in its digital excellence journey, enhancing its digital platforms and launching innovative services for customers, underscoring its commitment to providing a seamless and user-friendly digital banking experience.
Al-Mutawa highlighted the Bank’s key achievements during the period ending on June 30, 2026, noting that the Bank successfully increased the size of its multi-currency certificate of deposit program from $1 billion to $2 billion. This reflects the strong position of Kuwait Finance House in global money markets and the significant 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. This initiative aligns with the Bank’s commitment to enhancing the customer experience by facilitating access to core banking services anywhere and anytime.
In the context of its efforts to engage with the public and strengthen its banking offerings, the Bank organized community outreach activities and events in various commercial and administrative complexes. These events served as a platform to introduce customers to the Bank’s products and services, raise awareness among the customer base about the importance of safeguarding their financial information, and promote financial literacy across different segments of society.
The Bank continues to develop its digital channels to enhance cybersecurity awareness. Through public engagement initiatives, the Bank educates customers on the importance of protecting their banking information and warns them against potential fraud methods and attempts, as part of the “Let’s Be Aware” campaign. The campaign also aims to inform customers about various types of fraud and cybercrimes, as well as different scam patterns targeting customers via email, text messages, phone calls, and various mobile applications.
The Bank participated in the Kuwait Sustainability Exhibition, which focused on showcasing innovations related to clean environments and raising awareness about environmental sustainability, including the latest electric and hybrid vehicles and sustainable consumer products available in the Kuwaiti market.
Furthermore, the Bank provided support and participated in the national campaign “The Kuwaiti Flag Above Every Home,” launched by the Volunteer Work Center to strengthen national belonging values and reinforce the symbolism of the Kuwaiti flag in the hearts of citizens and residents. This participation reflects the Bank’s firm commitment to social and national responsibility.
Concluding his remarks, Al-Mutawa prayed to Almighty Allah to protect Kuwait from all harm and evil, and extended his highest expressions of gratitude and appreciation to His Highness the Amir of Kuwait, Sheikh Meshal Al-Ahmad Al-Jaber Al-Sabah, and His Highness the Crown Prince, Sheikh Sabah Khaled Al-Hamad Al-Sabah, for their wise leadership, sound guidance, and far-sighted vision in safeguarding Kuwait’s safety and security amid these critical circumstances and developments. He also extended his greetings and appreciation to Kuwait’s heroes on the front lines for their dedication in protecting the nation, and expressed his thanks to the Central Bank and other regulatory authorities for their support, guidance, and backing of the banking sector. He thanked the Bank’s customers for choosing Kuwait Finance House as their preferred provider of banking services, and acknowledged the Bank’s shareholders, executive management, and all employees for their dedication to their work under all circumstances, ensuring that Kuwait Finance House remains the customers’ preferred choice.
During the period ending on June 30, 2026, the Bank supported numerous community initiatives, including, but not limited to, supporting the “Zahrat Al-Arfaj” campaign, which was launched to honor the efforts of frontline workers and to embody the values of giving and solidarity that characterize Kuwaiti society.
