Kuwait Finance House (KFH) held the earnings webcast to highlight the Group’s financial performance and results during H1 2026. The webcast was attended by KFH Group Chief Executive Officer, Khaled AlShamlan, Group Chief Financial Officer, Abdulkarim Al-Samdan, and Group Chief Strategy Officer and Acting Group Chief International Banking Officer, Eng. Fahad Al-Mukhaizeem.

KFH 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 for H1 2026.

He said: "KFH reported in H1 2026 a net profit of KD 363.1 million, reflecting a growth of 6.1% compared to H1 2025. The earnings per share (EPS) reached 18.86 fils, representing an increase of 4.9% compared to the same period last year."

He added: "Net financing income reached KD 649.4 million, an increase of 6.9% compared to the same period last year. Total operating income increased to KD 990.5 million, representing an increase of 9.9% compared to the same period last year. Additionally, cost-to-income ratio improved to 30.6% during H1 2026, compared to 34.3% for the same period last year, showcasing our commitment to operational excellence."

He continued: "Net operating income for the first half of the year reached KD 687.9 million, reflecting an increase of 16.2% compared to the same period last year. The growth in our financial indicators during the first half of this year reflects the Group's sustained ability to achieve balanced growth amid a rapidly evolving and challenging operating environment at regional and global levels.

Strategic developments

AlShamlan added: "KFH continued to strengthen its financial position, with total assets reaching KD 42.2 billion at the end of H1 2026, an increase of 9.7% compared to the end of the first half of the previous year. Financing receivables reached KD 22.8 billion, an increase of 11.5% compared to the end of H1 2025. Depositors' accounts amounted to KD 21.6 billion, an increase of 9.4% compared to H1 2025, while shareholders' equity amounted to approximately KD 5.8 billion, an increase of 4.2% compared to the same period of the previous year. Also, capital adequacy ratio reached 17.47%, exceeding regulatory requirements, which underscores robust capital base of KFH."

"In line with our commitment to sustaining shareholder value, the Board of Directors has recommended distributing a semi-annual cash dividend of 10 fils per share, reinforcing shareholder confidence through sustainable, long-term returns, "AlShamlan explained.

Market leadership and global recognition

AlShamlan said:"KFH’s scale and market leadership continue to differentiate the Group regionally. The Bank ranked first in Kuwait and 12th regionally on Forbes’ list of the 100 largest public companies by market value. KFH market capitalization reached KD 14.1 billion by the end of H1-2026."

He added: "We are leveraging our international platform of more than 600 branches across 10 countries to capture cross-border opportunities, finance priority infrastructure, and support SMEs reinforcing KFH’s role as a trusted partner for growth across our core markets."

Social Responsibility and Sustainability

AlShamlan confirmed that KFH continues to translate its social responsibility into high-impact national initiatives. Since 2019, the Bank’s partnership with the Ministry of Justice has contributed approximately KD 61 million to support heavily indebted citizens. The Bank has also strengthened strategic partnerships with key ministries across education, youth protection, health, justice, and social development, reinforcing its role as a national partner in sustainable community progress. This impact was recognized by Global Finance, which named Kuwait Finance House the World’s Best Islamic Bank for CSR 2026.

Operational Efficiency and Innovation

AlShamlan said that:"Digital transformation remains central to KFH’s growth strategy, with our online platform now processing more than 600 million transactions annually strengthening customer engagement, efficiency, and risk control. We are also investing in future-ready national talent, highlighted by 100 employees earning specialized professional certificates through the Injaz scholarship program."

"As we move forward, despite recent geopolitical challenges, KFH will continue to focus on its strategic priorities: enhancing asset quality, improving financial performance and group synergies, advancing our digital infrastructure, and elevating the customer experience all within a solid risk management framework. We remain committed to maintaining our strong financial position while seizing market opportunities to drive future growth," He added.

"Our strong financial performance in H1-2026 reflects the effectiveness of our strategies and our ability to navigate challenges in the evolving banking and regional landscape," AlShamlan concluded.

Abdulkarim Al-Samdan, Group Chief Financial Officer:

Meanwhile, Group Chief Financial Officer, Abdulkarim Al-Samdan stated that KFH Group’s financial performance for the first half of 2026 demonstrated strong growth in core banking activities, highlighting key indicators.

Regarding the H1 2026 financial highlights, he pointed out that operating income grew faster than shareholder profit, with part of the improvement absorbed by precautionary provisions. The balance sheet became more productive as excess liquidity was redeployed. The Group’s geographic breadth is a key source of resilience, where the operating platform now generates a broader and more diversified income base, supported by scale, efficiency and contributions from multiple markets. Management’s priority is to sustain that return profile through disciplined financing growth, active funding and margin management, productivity and conservative capital allocation.

Al-Samdan pointed out that the international operations represented 39.4% of financing and 47.4% of deposits.  The important point is that no single geography is the sole driver of the Group earnings.

He emphasized that income diversification creates value only when the operating platform remains productive, which KFH Group sought to achieve by reducing operating expenses by 2.1% to KD 302.7 million.

Al-Samdan explained that the credit provision balance is as important as the current-period charge. While IFRS 9 expected credit loss was KD 525.1 million, the provision balance under Central Bank of Kuwait regulations was KD 1,029.1 million, leaving a KD 504.0 million buffer.

Regarding liquidity profile, the liquidity ratios show strong headroom; management's focus is the cost and economic deployment of that liquidity. LCR was 202.1%, NSFR was 123.5%, and the Kuwait financing-to-deposit ratio was 81.8%, against the current requirements shown on the slide of 80%, 80% and a 100% ceiling, respectively.

CET1 was 13.5%, Tier 1 was 15.7% and total CAR was 17.5%, above the current requirements of 10.5%, 12.0% and 14.0%, respectively.

"We manage capital to support risk-adjusted growth, absorb stress and provide appropriate distributions. The Group retains approximately 350 basis points of headroom above the current total capital requirement, providing capacity to pursue profitable growth,"Al-Samdan added.

Eng. Fahad Al-Mukhaizeem, Group Chief Strategy Officer & Acting Group Chief International Banking Officer

 Meanwhile, Group Chief Strategy Officer & Acting Group Chief International Banking Officer, Eng. Fahad Al-Mukhaizeem shared insights into Kuwait’s economic landscape and KFH’s strategic progress in the first half of 2026.

He said that: "At mid-year, the global economy remains resilient. The IMF projects growth of 3.0% in 2026 and 3.4% in 2027, with inflation expected to ease in 2027. While trade growth may moderate in 2026, the outlook points to gradual recovery, supported by continued policy discipline."

Regarding Kuwait`s economic and project outlook, he said:"Kuwait’s economy is expected to improve gradually after a softer Q1, with the IMF projecting growth to recover to 2.8% in 2027. Project activity remains supportive, with USD 2.0 billion in Q2 awards and a strong pipeline underpinning future activity and financing opportunities."

For monetary and banking sector environment

He highlighted that the Central Bank of Kuwait kept its discount rate at 3.50% through H1 2026. Inflation remained moderate at 2.2% in June, while the IMF expects average inflation to reach 2.8% in 2026.

Strategic priorities

Al-Mukhaizeem said that against this backdrop, KFH remained well positioned, supported by a strong balance sheet, prudent risk management, diversified income, and a broad regional presence. Entering H2, the Group retains the resilience and capacity to support customers and finance the real economy.

KFH advanced key strategic priorities during H1 by launching secure banking through WhatsApp, while KFHOnline mobile application continued to offer more than 200 services. The Group also expanded savings solutions supporting education, retirement, entrepreneurship, and home ownership.

He emphasized that KFH continued to translate its digital strategy into measurable improvements in customer experience, speed, and efficiency, earning Euromoney’s 2026 Best Digital Bank in Kuwait award. The Group also deepened integration across Turkey, Bahrain, Egypt, and the UK through shared technology and aligned risk frameworks, strengthening its project finance capabilities across infrastructure, energy, and urban development. In recognition of this progress, Global Finance named KFH the World’s Best Islamic Project Finance Provider for 2026.

Global Awards

Al-Mukhaizeem added that KFH earned more than 25 awards and rankings in H1 2026, reinforcing the strength of its franchise and the consistency of its execution. Key recognitions included World’s Best Islamic Financial Institution and World’s Best Islamic Corporate Bank from Global Finance, Best Digital Bank from MEED magazine, and Kuwait’s Best Private Bank from Euromoney. Together, these awards validate KFH’s leadership across Islamic banking, digital banking, private banking, and corporate banking.

"The first half of 2026 reinforced the importance of financial strength, diversification, and disciplined execution. KFH enters the second half with strong capital, an expanding digital ecosystem, and clear priorities, committed to Kuwait's development and sustainable long-term shareholder value," he concluded.