Al Ahli... A Strong Capital Center and Solid Foundation for Sustained Growth
- Gilles Jan van der Toel: Strong performance reflects our ability to execute our strategic plans
- Shyamak Sunawala: Our results reflect the strength and resilience of the “Al Ahli” brand overall
- Abdulaziz Jawad: Developments highlight the importance of the fundamentals upon which we built our success
Al Ahli Bank of Kuwait (ABK) Group held its analysts’ conference to discuss the results for the first half of 2026, with participation from Group CEO Gilles Jan van der Toel, CFO 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 explain the financial indicators recorded during the first half and the Group’s future strategic plans.
On this occasion, van der Toel said: “Al Ahli achieved 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 consistently execute our plans 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 financing position while maintaining a disciplined approach to risk management. Collectively, these achievements reinforce the resilience of our business model and provide a strong platform for future growth.”
He pointed out 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. He noted that this performance was driven by strong revenue growth and disciplined cost management. He further highlighted the strengthening of the balance sheet through increases in credit loans and deposits, alongside a further strengthened capital position. The Common Equity Tier 1 (CET1) capital adequacy ratio stood at 12.6%, and the non-performing loans (NPL) 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. Total assets rose by 5% compared to December 2025 to reach KD 7.3 billion, supported by 7.8% loan growth, while customer deposits increased by 6.5%, reflecting high client confidence in the strength of Al Ahli.
He added: “We continued to strengthen our balance sheet alongside business growth. Our non-performing loans 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 at 12.6% and the total capital adequacy ratio at 18.03%, providing the strong financial capacity and flexibility needed to support our future growth ambitions.”
He revealed that the Central Bank of Kuwait approved an increase in the Bank’s certificate of deposit (CD) 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.
This comes as Moody’s reaffirmed Al Ahli’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 its 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, and we continue to strengthen the Group’s robust work environment, with Kuwaitis holding approximately 70% of leadership positions and women comprising 41% of our total workforce. These figures reflect our commitment to developing local talent and comprehensively enhancing our workplace culture.”
He revealed that the Group has updated its strategy by refining its strategic priorities to seize new opportunities across its business segments, in line with its operational model, aiming to bolster its competitive position and create 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 ratios, despite an uncertain regional operating environment driven by geopolitical tensions and market volatility.
Van der Tol expressed optimism for the second half of 2026, noting that while 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, Sunawala said, “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 broadly reflects the strength and resilience of the Al Ahli brand, as we achieved strong growth in key financial metrics, further enhanced the quality of our loan portfolio, maintained capital and liquidity strength, and strengthened our financial flexibility to navigate turbulent conditions.”
He pointed out 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 the Group’s 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 was underpinned by lower funding costs and an improved funding mix, which led 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.”
The cost-to-income ratio remained well-disciplined at 43.1%. Although this was 90 basis points higher year-on-year, it continued its downward trajectory from 43.8% at the end of 2025.
Sunawala explained, “Our diversified business model continues to support the quality and strength of our earnings. Corporate banking remained the largest contributor to operating income at 44%, followed by retail banking at 33%, and treasury and investments at 23%, providing a balanced and diversified earnings mix.”
He noted that our capital adequacy ratios remained strong, with the total capital adequacy ratio at 18.03% and the Common Equity Tier 1 (CET1) ratio at 12.60%, both comfortably above regulatory minimums. This contributes to our capacity to support future growth. Non-performing loans improved to 1.25%, down from 1.35% in June 2025, reflecting disciplined underwriting, prudent portfolio management, and proactive credit monitoring.
Sonawala added, “The coverage ratio for provisions remained strong at 340%, with loan provisions maintained in line with Central Bank of Kuwait directives, exceeding the requirements of International Financial Reporting Standard 9 (IFRS 9) by KD 196 million, thereby providing a robust buffer against any adverse credit developments.”
He revealed that total assets rose by 5% to KD 7.3 billion, while net loans and advances grew by 7.8% to KD 4.9 billion, and customer deposits increased by 6.5% to KD 4.3 billion since December 2025. This aligns with the Group’s disciplined, risk-adjusted approach to growth, supported by the strength of its financing franchise and sustained 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 stated 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 enhanced its portfolio by expanding its low-cost deposit base.
Jawad added, “The UAE Retail Banking team 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 noted, “Through ABK Wealth Management, we have further strengthened our investment platform via our strategic partnership with Barings, a global leader in alternative asset management with approximately USD 481 billion in assets under management. We also launched a US dollar money market fund.”
He considered 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.
Jawad clarified that a key milestone in environmental, social, and governance (ESG) sustainability during the first half of 2026 was the publication of the 2025 Sustainability Report. Aligned with leading reporting standards, the report includes specific sustainability metrics, reinforcing the bank’s commitment to transparency, accountability, and long-term value creation.
Jawad disclosed, “Our strategy for the next five years focuses on launching the next phase of Al Ahli’s growth by accelerating profitable organic growth, while selectively pursuing external opportunities that generate added value. Our focus is increasingly directed toward 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.”
