Kuwait Finance House... Future Growth and Ability to Handle Challenges
Khaled Al-Shamlan: We are working to increase profits, operational efficiency, and market share, while advancing our digital products.
Abdul Karim Al-Samdan: Sustainable growth in key indicators, with increased operating revenues and net profits.
Fahad Al-Makhzoum: Disciplined execution of the strategy enhanced results, regional and international presence, and role integration.
Kuwait Finance House (KFH) held its analytical conference on the performance and results of the Group for the first half of 2026, with participation from Group Chief Executive Officer Khaled Al-Shamlan, Group Chief Financial Officer Abdul Karim Al-Samdan, and Group Head of Strategy and Acting Head of International Banking, Eng. Fahad Al-Makhzoum.
Al-Shamlan opened the session by highlighting the bank’s financial performance, stating: “The bank achieved net profits for the first half of 2026 amounting to KD 363.1 million, representing a growth rate of 6.1% compared to the first half of 2025. Earnings per share reached 18.86 fils for the first half of 2026, reflecting a 4.9% increase compared to the same period last year.”
Net financing revenues rose during the first half to reach KD 649.4 million, a growth rate of 6.9% compared to the same period last year. Total operating revenues, supported by growth across all key activities, reached KD 990.5 million, marking a 9.9% increase compared to the same period last year.
Cost-to-income ratio improved to 30.6% during the first half, down from 34.3% in the corresponding period last year, underscoring our commitment to efficiency and operational excellence.
Net operating revenues for the first half of this year also rose to KD 687.9 million, achieving a growth rate of 16.2% compared to the same period last year.
The growth achieved in our financial indicators during the first half of this year reflects the Group’s continued ability to deliver balanced growth, despite rapid changes and challenges in the operational environment at both the regional and international levels.
Strategic Developments
Al-Shamlan added: “Kuwait Finance House has continued to strengthen its financial position, with total assets reaching KD 42.2 billion at the end of the first half, representing a 9.7% increase compared to the end of the same period last year. Financing receivables stood at KD 22.8 billion, an increase of 11.5% compared to the end of the first half of 2025.”
Customer deposits reached KD 21.6 billion, a growth rate of 9.4% compared to the first half of 2025, while total shareholders’ equity amounted to approximately KD 5.8 billion, an increase of 4.2% compared to the same period last year. The capital adequacy ratio stood at 17.47%, exceeding regulatory requirements, which confirms the strength and robustness of the bank’s capital base.
In line with our ongoing commitment to enhancing shareholder value, the Board of Directors recommended the distribution of interim (half-yearly) cash dividends of 10 fils per share, thereby reinforcing shareholder confidence through the delivery of sustainable, long-term returns.
Market Position and Global Recognition
Al-Shamlan stated: “Kuwait Finance House continues to consolidate its leading position and exceptional business scale, further enhancing the Group’s regional distinction. The bank ranked first locally and 12th regionally on Forbes’ list of the top 100 public companies by market capitalization. KFH’s market capitalization reached KD 14.1 billion by the end of the first half of 2026.”
We are also enhancing the utilization of our international network, which comprises over 600 branches across 10 countries, to capture cross-border opportunities, finance strategic infrastructure projects, and support small and medium-sized enterprises (SMEs), thereby reinforcing Kuwait Finance House’s (KFH) position as a trusted partner in driving economic growth across all our key markets.
Corporate Social Responsibility and Sustainability
Al-Shamalan emphasized that KFH is translating its corporate social responsibility programs into national initiatives with tangible impacts. Since 2019, the bank’s partnership with the Ministry of Justice has contributed approximately KWD 61 million to assist citizens struggling to repay their debts. Furthermore, the bank has expanded its strategic partnerships with ministries overseeing education, youth affairs, health, justice, and social affairs, strengthening its role as a national partner in achieving sustainable community development. In recognition of these efforts, KFH was awarded the “Best Islamic Bank for Corporate Social Responsibility in the World 2026” by Global Finance magazine.
Operational Efficiency and Innovation
Al-Shamalan stated, “Digital transformation is a cornerstone of KFH’s growth strategy. Our platform currently processes over 600 million digital transactions annually, contributing to enhanced customer engagement, improved operational efficiency, and effective risk management. In this context, the bank is investing in developing and preparing national talent for the future, as evidenced by 100 employees obtaining specialized professional certifications through the ‘Injaz’ scholarship program.”
Moving forward, despite recent geopolitical challenges, KFH will continue to focus on its strategic priorities: enhancing asset quality, improving financial performance and group business integration, developing digital infrastructure, and elevating the customer experience, all within a robust risk management framework. We remain committed to maintaining our strong financial position while seizing market opportunities to drive future growth.
Concluding his remarks, Al-Shamalan said, “Our strong financial performance in the first half of 2026 reflects the effectiveness of our strategies and our ability to navigate challenges amid the rapid changes in the banking sector and the regional landscape.”
Strong Growth
On his part, Group Chief Financial Officer Abdul Kareem Al-Samdan stated that the group’s financial performance for the first half of 2026 demonstrated strong growth in its core banking activities. Highlighting key financial performance indicators, he noted that operating income grew at a faster rate than net profit attributable to shareholders, with a portion of this growth allocated to prudent provisions. The financial position has also become more productive due to the redeployment of surplus liquidity.
The group’s wide geographic footprint served as a source of resilience, as the operating platform now benefits from a broader and more diversified revenue base, supported by business volume, operational efficiency, and contributions from multiple markets. Management is focused on sustaining this level of returns through disciplined financing growth, effective funding and margin management, enhanced productivity, and conservative capital allocation.
Al-Samdan pointed out that international operations accounted for 39.4% of financing and 47.4% of deposits. The key point is that no single geographic market is the sole driver of the group’s profits.
He emphasized that this diversification of income sources creates sustainable value only when coupled with a highly efficient and productive operating platform, which the group pursued by reducing operating expenses by 2.1% to KWD 302.7 million.
Al-Samdan further clarified that the balance of credit provisions is no less significant than the provisions recognized during the current period. Expected credit losses under International Financial Reporting Standards amounted to KWD 525.1 million, while provisions under Central Bank of Kuwait regulations stood at KWD 1,029.1 million, providing a margin of KWD 504.0 million. Regarding liquidity indicators, Al-Samdan noted they reflect a comfortable cushion, with management’s focus centered on the cost of liquidity and its economic efficiency. He stated that the liquidity coverage ratio reached 202.1%, the net stable funding ratio stood at 123.5%, and the financing-to-deposits ratio in Kuwait was 81.8%, compared to current requirements of 80%, 80%, and a maximum of 100%, respectively.
Additionally, the Common Equity Tier 1 ratio reached 13.5%, the Tier 1 capital ratio stood at 15.7%, and the total capital adequacy ratio was 17.5%, surpassing current requirements of 10.5%, 12.0%, and 14.0%, respectively. He added, “We manage capital to support risk-adjusted return-based growth, enhance resilience to stress, and provide appropriate distributions. The Group maintains a margin of approximately 350 basis points above the current minimum total capital requirement, enabling continued profitable growth.”
Economic Landscape Overview
For his part, Eng. Fahad Khaled Al-Mukhaimis, Head of Group Strategy and Acting Head of Group International Banking, outlined the key features of Kuwait’s economic landscape, along with the strategic progress achieved by the Bank during the first half of 2026.
He said, “Mid-year, the global economy continues to demonstrate resilience. The International Monetary Fund projects global economic growth of 3.0% in 2026 and 3.4% in 2027, accompanied by a decline in inflation rates during 2027. Although trade growth may slow in 2026, future outlooks point to a gradual recovery supported by disciplined fiscal and monetary policies.”
Regarding Kuwait’s economic outlook and projects, Al-Mukhaimis stated, “The Kuwaiti economy is expected to gradually improve following a period of calm in the first quarter, with IMF indicators signaling a recovery in growth to reach 2.8% in 2027. Project activity serves as a key driver of this growth, following the awarding of contracts worth USD 2.0 billion in the second quarter, alongside an anticipated pipeline of major projects, which will stimulate economic activity and financing opportunities.”
On the monetary environment and banking sector, he noted that the Central Bank of Kuwait maintained its discount rate at 3.50% during the first half of 2026. While inflation remained at moderate levels of 2.2% in June, the IMF expects average inflation to reach 2.8% for 2026.
Resilience to Finance the Real Economy... in the Second Half
Al-Mukhaimis said, “In light of regional developments and the global economic landscape, Kuwait Finance House has maintained its strong position, underpinned by its robust financial balance sheet, prudent risk management, diversified revenue streams, and extensive regional presence.”
As the second half of the year begins, Kuwait Finance House Group retains the flexibility and capacity to support customers and finance the real economy.
Kuwait Finance House (KFH) continued to implement its strategic priorities during the first half of the year, launching its banking services via WhatsApp, while its KFHOnline app offered more than 200 banking services. Additionally, KFH Group expanded the scope of its savings solutions tailored for education, retirement, entrepreneurship, and home ownership.
He emphasized that KFH remains committed to translating its digital strategy into tangible improvements in customer experience, as well as the speed and efficiency of service delivery. In recognition of these efforts, the bank was awarded “Best Digital Bank in Kuwait 2026” by Euromoney.
The Group also strengthened cooperation among its branches in Turkey, Bahrain, Egypt, and the United Kingdom by integrating technical systems and harmonizing risk policies, which contributed to expanding its financing for infrastructure, energy, and real estate development projects. Based on these achievements, the bank won “Best Islamic Project Finance Provider in the World 2026” from Global Finance.
25 Awards... and Global Recognition
Al-Muheizim confirmed that KFH secured more than 25 awards and rankings during the first half of this year, recognizing its excellence across all areas of banking operations. These include “Best Islamic Bank in the World” from Global Finance, “Best Digital Bank in Kuwait” from MEED, “Best Private Banking Financial Services Bank” from Euromoney, and “Best Islamic Corporate Banking Bank in the World” from Global Finance, alongside numerous other global accolades that reflect the bank’s leading international position.
Concluding his remarks, Al-Muheizim stated that the results of the first half of 2026 demonstrated strong financial solvency, operational diversification, and disciplined execution. Moving into the second half of the year, KFH relies on a robust capital base, a growing digital ecosystem, and clear priorities, with a firm commitment to supporting Kuwait’s development journey and achieving maximum long-term sustainable value for shareholders.
