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

KFH Group Chief Executive Officer, Khaled AlShamlan commenced the meeting by shedding light on the Bank’s financial performance for the year ended 2025. He said: "With the grace of Allah, KFH has reported a net profit of 632.1 million KD for the year, reflecting an increase of 5% compared to FY 2024. This achievement marks the highest profit within the Kuwaiti banking sector. Earnings per share reached 35.64 fils, up 5.8 % from the previous year. Our net financing income also saw significant growth, totaling 1.3 billion KD, an increase of 11.5%. Net operating income increased to 1.2 billion KD, a 10.7 % increase, financing receivables reaching 21.8 billion KD increased by 14.4%, compared to last year. Our Total assets reached 42.8 billion KD for the year 2025, an increase of 6.1 billion KD, or 16.5%, compared to last year."

He added:"Our capital adequacy ratio stands at 19.81%, exceeding the minimum regulatory requirement, which underscores KFH’s strong capital base. The Board of Directors considered the distribution of cash dividends to shareholders of 24% (including 10% in H1 2025 and a proposed 14% cash dividend for year‑end). The Board of Directors also considered the distribution of bonus shares of 7% after the approval of the General Assembly and the relevant authorities."

AlShamlan stated that:"KFH’s solid FY 2025 performance reaffirms our commitment to sustainable growth. Our strategic roadmap focuses on enhancing liquidity, capital, and risk management while aiming to position KFH among the world’s top 100 banks. The record profits reflect our market leadership and resilience during global economic fluctuations."

"As a leading global economic entity, KFH benefits from a vast international network of over 600 branches. This geographic diversity and our varied revenue streams have significantly supported our operational performance, delivering strong results for both shareholders and customers. In 2025, we successfully expanded our Private Banking and Wealth Management services and invested in modern banking technology. Our focus on digitalization and innovative product development enhances customer experience and solidifies our competitive edge in the rapidly evolving banking landscape," he added.

He mentioned that KFH continues to play a pivotal role in supporting economic growth and aligning with the State’s vision for a more prosperous financial future. We are committed to diversifying the national economy and achieving sustainable development in line with Kuwait Vision 2035. Our efforts include financing mega-projects in infrastructure, energy, oil and gas, and urban development, as well as providing credit facilities to Kuwaiti corporates and SMEs.

"Recently, KFH signed a KD 1.5 billion credit facilities agreement with the Kuwait Petroleum Corporation the largest KD-denominated deal of its kind of which 675 million KD is allocated to Islamic finance, with KFH contributing 405 million KD as the lead strategic partner," AlShamlan highlighted.

Meanwhile, he added: Our commitment to the community remains strong, highlighted by a 15 million KD donation for a specialized heart disease center, the opening of a tenth ward at the Addiction Treatment Center, and support for the development of Al Wataniya area in Kuwait City. Additionally, we released our fifth Sustainability Report and third Carbon Footprint Report, showcasing our proactive social responsibility efforts and environmental impact."

"In 2025, we successfully issued 1 billion USD in Senior Unsecured Sukuk as part of our 4 billion USD Sukuk Program, aimed at strengthening long-term funding sources and supporting our operations. Our digital transformation accelerated in 2025, enhancing our value proposition and partnerships while expanding smart branch services. This brought the total number of digital services on the KFHonline app to over 200," he added.

"In 2025, our customers completed over 600 million digital banking transactions, underscoring their confidence in us and reinforcing our leadership in delivering innovative financial solutions."

He further said: "As a testament to our successes, KFH received 58 awards in 2025, including “World’s Best Islamic Bank” by Global Finance and “Bank of the Year – Kuwait” by The Banker, along with awards for Most Innovative Islamic Bank in Kuwait and Best Islamic Private Bank - Digital Innovation 2025."

"We  look forward to continuing our journey of growth and innovation, driving positive change in the banking sector and contributing to Kuwait’s economic vision." AlShamlan emphasized.

Group Chief Financial Officer- Abdulkarim Al-Samdan

Group Chief Financial Officer, Abdulkarim Al-Samdan that KFH Group has achieved solid growth in its core banking activities for the financial year ended 31 December 2025. Key financial performance highlights are as follows:

The Group has achieved Net Profit After Tax attributable to Shareholders for the year ended 31^st December 2025 of KD 632.1mn higher by KD 30.3mn or 5.0% compared to 2024.  Net financing income stood at KD 1,279.2mn representing an increase of 11.5%. Net Operating income stood at KD 1,209 mn representing an increase of 10.7%. Cost to income ratio stood at 34.06% compared to 35.46% for the year 2024. Earnings per share for 2025 reached 35.64 fils; have an increase of 5.8% compared to last year.

Moreover, Financing income increased by KD 364.1mn or 12.6% in comparison to previous year due to increase in both average balance of profit earnings assets and yield by 38bps.  Net financing income at KD 1,279.2mn representing an increase of 11.5% mainly due to increase in financing income. Net Operating income at KD 1,209mn represents an increase of 10.7% compared to previous year. Total operating income has increased by KD 141.2mn or 8.3%. Looking at the total operating income profile, there is increased contribution of net financing income to total operating income from 67.8% in 2024 to 69.8% in 2025. Further contribution of fee and commission income has increased from 10.5% to 12.5%. This represents enhancement and strength of our core banking activities. In addition, Total Operating Expenses stood at KD 624.3mn which is higher only by 4.1%.

Al-Samdan added:"It is important to note that expenses of Kuwait Turk increase by 16% mainly driven by the inflation while all other group entities combined decreased by 3% leading to overall marginal increase of 4%, this is a testament to the value creation through operational efficiency within the group." Furthermore, Average Profit Yielding Assets is higher by 6.0% compared to 2024 driven by increase in financing receivables and investment in debt securities. Looking at provisions and impairments, the group total impairment charge increased by KD 41.4mn compared to 2024.

"As of December 2025, the provision as per CBK instructions exceeds the ECL based on CBK guidelines by KD 527mn compared to KD 539mn in 2024. This provides Group with a very comfortable buffer to withstand possible negative effect of the prevailing uncertainties on ECL provision requirements." He added.

Meanwhile, Al-Samdan explained that Total Assets reached KD 42.8bn representing an increase of KD 6.06bn or 16.5%.  Net financing receivables increased to KD 21.8bn representing an increase of KD 2.7bn or 14.4% compared to 2024 due to increase in both corporate and retail portfolio. Investments in debt securities reached KD 7.6bn representing an increase of KD 712.8mn or 10.4% compared to 2024. Deposits for the year 2025 have an increase of KD 1.8bn or 9.4% in comparison to year 2024.

ROAE increased from 11.22% to 11.32% mainly from increase in profit attributable to shareholders. ROAA increased from 1.74% to 1.84% similarly mainly due to increase in Net Profit. C/I ratio improved from 35.46% to 34.06% due to value creation through operational efficiency. EPS increased from 33.68fils to 35.64fils due to increase in profit attributable to shareholders. Group CAR ratio for 2025 is 19.81%, well above the limit required by regulators, which confirms the solid capital base of KFH.

Group Chief Strategy Officer, Fahad Al-Mukhaizeem

Meanwhile, Group Chief Strategy Officer, Fahad Al-Mukhaizeem highlighted the Kuwait operating environment with an overview on KFH. He also talked about KFH's strategy, as well as FY 2025 results. Al-Mukhaizeem said: "Global economic growth remained resilient in 2025 amid persistent trade tensions, elevated geopolitical uncertainty, and the restraining effects of relatively tight financing conditions on demand and investment. Global GDP growth is estimated at 3.3% in 2025 and is expected to remain stable at 3.3% in 2026, supported by technology-driven investment in advanced economies."

He added that global inflation is projected to moderate to 4.1% in 2025 and further to 3.8% in 2026, reflecting moderating demand and easing energy prices. The outlook remains subject to downside risks related to supply-chain disruptions, commodity price volatility, and rising fiscal and sovereign debt pressures in several major economies.

"The Kuwaiti economy is experiencing a gradual recovery driven by non-oil sector growth, despite continued adherence to OPEC+ production limits. Following a contraction of 2.6% in real GDP in 2024, growth is expected to reach around 2.6% in 2025 and accelerate to 3.9% in 2026, supported by stronger non-oil activity, resilient domestic demand, and sustained momentum in government capital spending." Al-Mukhaizeem highlighted.

In 2025, Kuwait delivered a standout performance in the projects market, recording over 16% growth on an annual basis in awarded contract values to USD 10.2 billion, the highest level in nine years, supported by projects aligned with Vision 2035 and accelerated investment in the energy (oil and gas), power, and transport sectors—signaling a clear shift from planning to execution. This momentum has supported financing opportunities for KFH, reinforcing its role in structuring and funding large-scale projects across key strategic sectors.

The Central Bank of Kuwait (CBK) continued to recalibrate its monetary stance amid a benign inflation environment. Annual inflation remained contained at around 2.5% in September 2025, with full-year inflation projected to ease to approximately 2.2%, down from an average of 2.9% in 2024.

The CBK cut its discount rate by 25 basis points in December 2025 to 3.50%, reflecting a measured easing approach aimed at supporting economic activity while preserving price stability and broader macro-financial balance.

He added that the mortgage law draft remains in review. Its approval could generate significant demand for mortgage financing, affecting the banking sector and housing market. Ongoing discussions signal progress toward a new mortgage regulatory framework supportive of long-term banking sector growth, with implementation and impact dependent on the final law and implementing regulations.

KFH remained Kuwait’s largest listed company in Boursa Kuwait by market capitalization, with a market value of approximately KWD 14.6 billion as of the end of December 2025, up 17.4% year on year versus end-2024 and accounting for around 27.4% of total listed market capitalization, which stood at KWD 53.2 billion, up 22.1% over the same period.

This reflects sustained investor confidence in KFH’s earnings viability, balance sheet strength, and disciplined execution, highlighting its role as a core defensive and growth anchor in the Kuwaiti equity market, supported by strong results from its diversified business model and market leadership.

KFH concluded 2025 with exceptional achievements, securing more than 58 prestigious regional and international awards across banking excellence, digital transformation, sustainability, innovation in Islamic finance, and service quality. This recognition reflects strong international confidence in KFH’s strategy execution, operational strength, and governance, reinforcing its position as a leading Islamic financial institution regionally and globally, and its ability to deliver sustainable value in a competitive banking landscape.

KFH has advanced its digital transformation by shifting from basic digitization to value-driven technology adoption. KFH has expanded use of technology across frontline channels, deploying solutions to enhance customer engagement and service efficiency. At the same time, enhancements to the KFH mobile app have strengthened digital journeys and increased migration to scalable, efficient channels, supported by stronger digital governance, cyber risk management, and fraud prevention.

"KFH has reiterated its focus on institutional partnerships and embedding sustainability at the core of its business model, while leveraging advanced digital capabilities to support long-term competitiveness. This is reflected in its role as a strategic partner in international economic forums and the integration of ESG considerations into client engagement—particularly through targeted SME programs—underscoring a disciplined approach to growth, resilience, and long-term value creation." Al-Mukhaizeem emphasized.

"KFH enters 2026 from a position of strength, supported by disciplined execution, a resilient balance sheet, and clear strategic priorities. Our diversified model, digital progress, and sustainability focus position us well for sustainable growth and long-term value creation." He concluded.