Kuwait Finance House (KFH) held the earnings webcast to highlight the Group’s financial performance and results for the period ended Q3 2026. The webcast was attended by KFH Group Chief Financial Officer, Abdulkarim Al-Samdan and and Acting Group Chief International Banking Officer, Group Chief Strategy Officer, Eng. Fahad Al-Mukhaizeem.

Group Chief Financial Officer, Abdulkarim Al-Samdan:

Group Chief Financial Officer, Abdulkarim Al-Samdan commenced the meeting by shedding light on the Bank’s financial performance for Q3 2026. He added that KFH Group’s financial performance demonstrated strong growth in core banking activities, highlighting key indicators.

Al-Samdan said that the nine-month results show a stronger operating earnings base, reflecting growth in financing and fee income alongside lower expenses. Net operating income rose by 11.7% year-on-year to approximately KD 1.0 billion, with cost-to-income at 30.8%. Shareholder profit increased by 6.2% to KD 523.4 million.

The financing portfolio is now 7.5% above year-end, reflecting continued deployment of liquidity into customer financing.

Al-Samdan said that the Group’s earnings are geographically diversified. "As of the end of September, the international business accounted approximately 38.6% of Group financing and 49.6% of deposits."

Al-Samdan explained that:" The gap between income and expense growth remains favorable. Compared with the same nine-month period last year, operating income was 6.7% higher, while expenses fell by 3.0% to KD 447.5 million. As a result, cost-to-income ratio improved by 3.1 percentage points to 30.8%."

He also highlighted that the regulatory provision balance remains above the IFRS 9 expected credit loss balance. Against expected credit losses of KD 549.8 million, provisions under Central Bank of Kuwait regulations stood at KD 1,049.7 million. The resulting buffer was KD 499.9 million.

Meanwhile, Al-Samdan said that September liquidity ratios remained comfortably above the current regulatory minimums. LCR of 137.0% and NSFR of 120.7% were above their respective 80% minimums. The Kuwait financing-to-deposit ratio was 84.3%, below the 100% ceiling.

On that basis, CET1 was 13.2%, Tier 1 was 15.4%, and total capital adequacy was 17.2%. The corresponding current requirements were 10.5%, 12.0% and 14.0%, respectively.

Fahad Al-Mukhaizeem, Acting Group Chief International Banking Officer, Group Chief Strategy Office

Meanwhile, Acting Group Chief International Banking Officer, Group Chief Strategy Office, Fahad Al-Mukhaizeem shared insights into Kuwait’s economic landscape and KFH’s strategic progress in Q3 2026.

He said: "KFH entered the final quarter of 2026 from a position of strength, remaining the largest listed company on Boursa Kuwait by market capitalization as of 30 September. Q3 demonstrated the strength of KFH’s diversified franchise and our continued execution. Our priorities remain clear: focus on customer centricity, deepen integration, accelerate digital adoption and pursue quality growth with disciplined risk and liquidity management."

He added:" We remain confident in our ability to deliver sustainable shareholder value, support our customers and contribute to Kuwait’s long-term development."

Al-Mukhaizeem stated that KFH continued to advance its digital capabilities through KFHOnline, smart branches, upgraded ATMs and the enhanced eCorp platform for corporate customers. "The opening of Al-Qairawan center brought our Group Service Centers in Kuwait to three, strengthening service for customers across our regional network," he added.

300 services

KFH Bahrain also demonstrated strong digital progress, reporting a 40% year-on-year increase in active customers through digital channels and having successfully automated more than 150 banking services, bringing the total number of digital banking services to over 300 services.

Customer experience

These initiatives strengthen Group integration, customer experience and efficiency. The Banker recognized this progress by ranking KFH the best-performing bank in Kuwait in its Top 100 Arab Banks 2026 ranking.

National initiatives

KFH continues to support national initiatives of strategic impact, including a USD 13 million contribution to the Kuwait Emergency Response Fund, and an additional USD 6 million planned contribution to support power station infrastructure needs.

Award-Winning Performance

KFH continues to earn international recognition, including No. 1 Best Performing Bank in Kuwait in The Banker's 2026 Top 100 Arab Banks, Euromoney awards for Wealth Management, ESG and Digital Banking, World's Best Islamic Bank by Global Finance, and Best Digital Bank in Kuwait by MEED.

Kuwait Economic Outlook

Kuwait’s outlook reflects temporary pressure from regional conditions and oil disruptions. The IMF projects a 2026 GDP contraction, followed by a strong rebound in 2027 with a GDP growth forecast of 17.1% as energy production and transport are expected to normalize.

Kuwait’s USD 122.7 billion pipeline of planned and unawarded projects offers significant longer-term financing potential. In Q3, power and gas represented more than 80% of project awards.

Monetary and Banking Environment

Inflation in Kuwait remained at 2.19% in July 2026. The IMF projects, on average, a moderate inflation of 2.2% in 2026 and 2.4% in 2027.  The Central Bank of Kuwait maintained the discount rate at 3.5% in September.

Legislative and Financial Developments

The new Government Sukuk Law establishes a framework that can diversify sovereign funding, broaden the investor base and support a Sharia-compliant yield curve.

The new mortgage financing law broadens bank participation and allows eligible beneficiaries to combine subsidized and unsubsidized financing for terms of up to 25 years. Both frameworks create promising opportunities for KFH as implementation progresses.

Global Economic Backdrop

The global economy remained resilient. In October, the IMF raised its 2026 global GDP growth forecast to 3.1%, while maintaining 2027 at 3.4%, supported by AI-driven investment.