Kuwait Finance House (KFH) held the earnings webcast for highlighting the Group’s financial performance and results for Q3-2025. The webcast was attended by KFH Group Chief Executive Officer, Khaled Yousef AlShamlan, Group Chief Strategy Officer, Eng. Fahad Al-Mukhaizeem, and Group Chief Financial Officer, Abdulkarim Al-Samdan.

Group Chief Executive Officer - Khaled AlShamlan

KFH Group Chief Executive Officer, Khaled AlShamlan commenced the meeting by shedding light on the Bank’s financial performance up to the end of the third quarter of 2025. He said that, by the grace of Allah, KFH achieved a net profit for shareholders of 492.7 million KD up to the end of the third quarter of 2025, an increase of 2.0% compared to the same period last year. These profits are the highest in the Kuwaiti banking sector and the local market. Earnings per share up to the end of Q3 2025 reached 27.98 fils; an increase of 2.0% compared to the same period last year. Net financing income up to the end of Q3 2025 reached 944.3 million KD; an increase of 13.1 % compared to the same period last year. Total operating income up to the end of Q3 2025 increased, supported by an increase in all core activities to reach 1.3 billion KD; an increase of 10.0 % compared to the same period last year.

Net operating income up to the end of Q3 2025 increased to reach 850.2 million KD; an increase of 12.8 % compared to the same period last year. Financing receivables as the end of Q3 2025 reached about 21.2 billion KD, an increase of 11.3% compared to the end of last year. As of the end of Q3 2025, total assets amounted to 40.8 billion KD, an increase of 11.0% compared to the end of last year. Shareholders’ equity amounted to 5.6 billion KD, an increase of 1.5% compared to the end of last year. Depositors’ accounts amounted to 20.1 billion KD as of the end of Q3 2025, an increase of 4.7% compared to the end of last year. The capital adequacy ratio reached 17.68% which is above the limit required by regulators. This ratio confirms the solid capital base of KFH.

AlShamlan added: “The strong Q3 results achieved by KFH confirm our ongoing commitment to shareholders and customers. This performance has created new opportunities for sustaining and increasing record profits.”

He further noted: “KFH continues to maintain its market leadership as the largest company on Boursa Kuwait, the most profitable and best-performing bank, and the bank with the highest dividend distribution. This commitment is underscored by KFH's recent recognition as the top-performing bank in Kuwait in The Banker's 2025 Top 1000 World Banks ranking.”

AlShamlan mentioned that the digital and substantial achievements of recent years provide a solid foundation for future growth. This success confirms KFH's ability to meet its strategic goals, particularly sustainable growth and industry leadership, and pave the way for its ambition to join the world's top 100 banks in the coming years.

Additionally, KFH continues to provide the necessary financing to Kuwaiti corporates to enhance their businesses and support their expansion. In addition, KFH participates in financing major development projects in a way that serves the state's development plan and stimulates the national economy.

AlShamlan added: “The launch of AUB - Bahrain's new visual identity, rebranding it as KFH - Bahrain under the umbrella of KFH Group, represents a strategic shift. This change strengthens the bank's position as an influential banking group with a geographic presence in 10 countries worldwide, most notably Kuwait, Bahrain, Turkey, Egypt, Germany, and the United Kingdom. The Group offers innovative services and products that keep pace with customer aspirations and global developments in the financial and banking sectors.”

He emphasized that the importance of KFH unifying its services and products across KFH Group lies in enhancing operational efficiency and delivering consistent customer experience across its extensive global network which spans over 600 branches. “This strategic approach not only allows us to take advantage of the unique strengths of individual markets but also reinforces KFH's leadership as the most valuable and trusted Islamic banking brand worldwide,” noted AlShamlan.

Furthermore, KFH launched the KFH Group Service Center. This center serves both KFH-Turkey and KFH-Egypt, aiming to better meet customer needs and deliver an integrated banking experience.

Additionally, our digital transformation strategy focuses on enhancing operational efficiency. This is achieved by employing digital technologies in its operations, supporting a structured transformation program across all business sectors.

KFH launched a comprehensive update to its KFHOnline app, introducing a modern design and smart banking features along with KFH-Go smart branches and other e-channels that provide innovative solutions collectively showcasing KFH's readiness to deliver unlimited, high-efficiency digital services with exceptional flexibility.

He added that the Bank is also focused on supporting and financing Small and Medium-sized Enterprises (SMEs), acknowledging their crucial role in driving economic growth. Additionally, the successful launch of our Sustainable Business Program for SMEs aims to provide them with a competitive edge while showcasing KFH's dedication to sustainable development and leadership.

AlShamlan stated that KFH’s financing efforts have been recognized by major international institutions. The bank received the "Worlds`s Best Islamic Financial Institution" award for 2025 from Global Finance magazine, along with the "Best Islamic Private Bank - Digital Innovation" award from Global Private Banker magazine. Furthermore, KFH was honored with the "Kuwait’s Best Bank for SMEs "award from Euromoney, the "Most Sustainable Projects in the Middle East" award from Forbes magazine, and the "World`s Best Islamic Retail Bank" award, also from Global Finance.

Additionally, KFH maintained its position as the largest listed company in Kuwait on Forbes’ 2025 Global 2000 list.

Speaking about future plans, AlShamlan said: “As we look ahead, our focus remains on sustainable growth through synergies and AI-driven digital innovation, emphasizing value for our stakeholders, especially our customers. By consistently achieving top profits in the banking sector and pioneering digital transformation, we are well-positioned to seize emerging opportunities. Our strong financial position and diverse business model enable us to navigate potential challenges in the economy effectively.”

Group Chief Financial Officer - Abdulkarim Al-Samdan

KFH Group Chief Financial Officer, Abdulkarim Al-Samdan, said that the financial performance of KFH group for the nine months period ended 30 September 2025 recorded solid growth in its core banking activities during the 9 months period of 2025. Key financial performance highlights are as follows:

The Group has achieved Net Profit After Tax attributable to Shareholders for the first nine months ended 30^th September 2025 of KD 492.7mn higher by KD 9.8mn or 2.0% compared to 9M-24 of KD 482.9mn.

Net financing income at KD 944.3mn increased by KD 109.2mn or 13.1% compared to same period last year

Net Operating income at KD 850.2mn increased by KD 96.2mn or 12.8% compared to same period last year

Cost to income ratio improved to 35.18% for 9M-25 compared to 36.77% for 9M-24

Earnings per share up to the end of Q3 2025 reached 27.98 fils; an increase of 2.0 % compared to the same period last year

Total operating income increased by KD 119.1mn or 10.0%. Looking at the total operating income profile, there is an increased contribution of net financing income to total operating income from 70.0% in 9M-24 to 72.0% in 9M-25. Further contribution of fee and commission income has increased from 10% to 13%. Enhanced contribution of net financing income and fee and commission income highlight enhanced core banking activities.

Average Profit Yielding Assets are higher by 4.1% compared to Dec-2024 and 4.9% compared to Sep-24 mainly from increase in average financing receivables and average investment in debt securities.

Al-Samdan noted that Group Net Financing Margin (NFM) for 9M-25 at 3.16% is higher by 12bps compared to 9M-24.

He said that KFH cautious approach towards provisioning have contributed to financing provision balance exceeding ECL required as per CBK IFRS 9 by KD 478mn as of 30 September 2025.

Moving to the financial position:

Total Assets at KD 40.8bn increased by KD 4.05bn or 11% in Sep-25 compared to Dec-2024.

Net financing receivables at KD 21.2bn increased by KD 2.2bn or 11.3% compared to Dec-2024 mainly on account of increase in corporate portfolio.

Investments in debt securities at KD 7.6bn has increased by KD 735mn or 10.7% compared to Dec-2024.

Deposits for 9M-25 at KD 20.1bn have increased by KD 900mn or 4.7% compared to Dec-2024.

The contribution from CASA deposits to total group customer deposits as of 30 Sep-25 is 44.6% and on an overall basis group continues to benefit from a large pool of low-cost deposits.

Group Chief Strategy Officer- Eng. Fahad Al-Mukhaizeem

Meanwhile, KFH Group Chief Strategy Officer, Fahad Al-Mukhaizeem, shared insights into Kuwait’s economic landscape and KFH's strategic progress during the 9 months of 2025. He said that global economic growth is expected to ease from 3.3% in 2024 to 3.2% in 2025, with advanced economies growing at nearly 1.5% and emerging markets above 4%. Disinflation continues unevenly, requiring cautious monetary policy amid risks including mid-2025 tariff shocks and policy uncertainty. 

Kuwait's economy shows clear recovery signs where economic activity turned positive in Q1 2025, expanding 1.0% year-on-year. Full-year 2025 real GDP is projected to grow 2.6% supported by stronger private domestic demand.

Kuwait's projects market rebounded in Q3 2025, with awards up 33.8% year-on-year to USD 4.3 billion. Cumulative awards in the first nine months were up more than 25% from 2024, indicating stronger execution momentum. 

Kuwait government returned to global debt markets pricing at among the tightest emerging-market spreads in 2025. This issuance strengthens the sovereign yield curve, deepens global capital markets integration, diversifies Vision 2035 project funding, sets improved pricing benchmarks for banks and corporates, and supports credit growth and financial-sector depth.

Annual inflation eased to 2.39% in July 2025 (projected to moderate to 2.2% by the end of 2025) from 2.9% average in 2024, reflecting the Central Bank of Kuwait's prudent monetary policy. The CBK cut its discount rate by 25 basis points in September 2025, from 4.00% to 3.75%, reflecting a cautious approach to support sustainable growth while maintaining macroeconomic stability.

Al-Mukhaizeem said: “KFH delivered strong Q3 results with growth in financing, deposits, and fee income, reflecting our diversified model and leadership in retail, corporate, and investment banking. Our liquidity coverage and capital adequacy ratios exceed regulatory requirements, ensuring resilience.”

KFH preserved its position as Kuwait's largest listed company, with market capitalization increasing to KWD 14.3 billion (27.2% of all listed companies totaling KWD 52.6 billion) as of end-Q3 2025, up 19.9% compared to Q3 2024, reflecting sustained investor confidence.

He affirmed that innovation remains central to KFH's strategy. In Q3, we expanded our AI-driven virtual assistant "Fahad" across digital and branch channels, while introducing AI speech-analytics tools in contact centers to enhance service quality and efficiency. The KFHOnline app added real-time gold trading, seamless digital onboarding, and advanced Sharia-compliant financing features, reinforcing our customer-centric approach.

Al-Mukhaizeem added: “KFH continues strengthening its regional footprint following successful rebranding of KFH Bahrain and full integration of KFH Egypt. These milestones established unified governance and digital frameworks, enhancing cross-market connectivity and reinforcing KFH's standing as a leading international Islamic financial institution.”

KFH underscores its sustainability commitment by embedding ESG considerations across strategy, risk, and product design, expanding Sharia-compliant financing supporting renewable energy, energy efficiency, and low-carbon infrastructure.

He pointed out that by entering Q4, KFH is well-positioned to capitalize on Kuwait's government projects pipeline, particularly in project and infrastructure financing. Our priorities include advancing our digital ecosystem and AI capabilities, deepening regional synergies, and promoting sustainable and inclusive finance aligned with Kuwait Vision 2035.

Al-Mukhaizeem said: “Our Q3 2025 results demonstrate exceptional resilience and consistent performance through a robust business model and prudent funding strategy. We remain committed to being a trusted financial partner and key enabler of Kuwait's economic transformation.”