Kuwait Finance House (KFH) Group Chief Executive Officer, Khaled Yousef AlShamlan, said that prioritizing core banking activities has enhanced operational efficiency, quality of customer service, and profit sustainability. In an interview with CNBC Arabia, he added that this focus has resulted in higher financing income, improved asset quality, and a sharper competitive edge.

Highlighting the Group’s 2025 fiscal year performance, AlShamlan pointed to growth in all key financial indicators as evidence of a successful operational strategy and a solidified financial position.

AlShamlan said that KFH remains the most profitable bank in Kuwait, with 2025 net profit reaching KD 632.1 million, up 5% compared to 2024.

He noted that KFH successfully grew its net financing income by roughly 11.5% compared to the previous year, reaching approximately KD 1.3 billion.

AlShamlan noted that operating income rose to KD 1.8 billion, an 8.3% increase over the previous year driven by growth across all core activities. This growth occurred despite the previous year’s figures including a KD 70.1 million profit from the sale of KFH-Bahrain in Q2 2024. He emphasized that these results demonstrate the success of the Group’s strategy, a robust capital base, and strong operational performance.

He added that the net operating income in 2025 rose to KD 1.2 billion, a 10.7% increase compared to the previous year.

AlShamlan explained that the cost-to-income ratio improved to around 34.06% from 35.46% the previous year, noting that this progress reflects operational efficiency and expense management.

Financial position

He pointed out that all key indicators in the 2025 financial position showed significant growth. Total assets rose to KD 42.8 billion, a 16.5% increase, reflecting strong operational performance and a growing volume of banking business. He also noted that rising customer confidence and the expansion of the financing receivables, which reached approximately KD 21.8 billion, up 14.4%, further drove these results.

AlShamlan added that depositors’ accounts reached KD 21 billion, an increase of 9.4%.

He said that the Group’s non-performing financing (NPF) ratio reached 1.51% compared to 1.78% the previous year, adding that this ratio is positive and reflects the quality of the financing portfolio. Furthermore, he highlighted that the provisions coverage ratio stands at approximately 383% for KFH-Kuwait and about 287% for the Group.

Subsidiary Performance

Regarding the contribution of international subsidiaries to profitability, AlShamlan explained that these entities continued to deliver strong results. "They accounted for approximately 44% of the Group’s net profits, reflecting the strength of its regional and international presence. This performance also highlights the seamless integration across the Group’s subsidiaries and their collective ability to build a diverse, global customer base."

Economic growth

AlShamlan indicated that KFH continues its leading role in supporting economic growth, promoting financial inclusion and supporting the State’s ambitious economic vision for a more stable and prosperous financial future, while diversifying the national economy and achieving sustainable development in line with Kuwait Vision 2035.

He highlighted the signing of a KD 1.5 billion credit facilities agreement for the Kuwait Petroleum Corporation, the largest KD-denominated deal of its kind. The Islamic finance tranche accounted for KD 675 million of the total, with KFH, the lead strategic partner for the oil sector, contributing KD 405 million.

Real Estate Financing Law

Regarding the Real Estate Financing Law, AlShamlan anticipated a positive impact upon its implementation, noting its role in introducing new financing tools to address liquidity challenges and stimulate credit.

He stated that this law complements the Real Estate Developer Law, supporting efforts to resolve the private housing crisis and driving growth across the real estate sector.

AlShamlan emphasized that KFH and the wider Kuwaiti banking sector are fully prepared, with ample liquidity, to finance future real estate projects and strengthen their role in the national economy.