22/04/2026 06:31 AST
Chairman of Kuwait Finance House (KFH) Hamad Abdulmohsen Al-Marzouq announced that KFH achieved a net profit for shareholders of KD 176.5 million for the first quarter of 2026, representing an increase of 5.0 percent compared to the same period last year.
Earnings per share for the first quarter of 2026 reached 9.59 fils; an increase of 5.0 percent compared to the same period last year. Net financing income for the first quarter of the year reached KD 332.0 million; an increase of 4.1 percent compared to the same period last year.
Total operating income for Q1 2026 increased to KD 496.4 million, supported by growth across all core business activities, representing an increase of 6.0 percent compared to the same period last year. Net operating income for the first quarter of 2026 increased to KD 340.6 million; an increase of 10.3 percent compared to the same period last year.
This improvement was driven by a 6.0 percent increase in total operating income, alongside a 2.2 percent decline in total operating expenses, which led to an improvement in the cost-to-income ratio to 31.4 percent during the first quarter of 2026, compared to 34.0 percent in the same period last year. This underscores the Group's focus on operational excellence and resource optimization.
The Group has continued to strengthen its financial position, as evidenced by a growth in total assets to KD 43.6 billion in Q1 2026, a 1.9 percent increase compared to year-end 2025. Financing receivables as of the end of the first quarter of 2026 stood at KD 21.8 billion. Additionally, shareholders' equity stood at 5.6 billion for the same period.
Depositors' accounts reached KD 21.4 billion as at the end of Q1 2026, up 1.9 percent compared to year-end 2025. The capital adequacy ratio reached 19.23 percent, a level that exceeds regulatory requirements and confirms the strength of the Group's capital base.
Balanced growth
Al-Marzouq stated that growth in financial indicators during the first quarter of the year reflects the Group's sustained ability to achieve balanced growth amid the rapidly evolving and challenging operating environment at the regional and global levels. This is driven by robust core banking activities, improved operational efficiency, solid risk management, and the continuous diversification of income sources across the Group.
He added that these results underscore the strength of the Group's strategy, which strikes a balance between growth and financial resilience while enhancing its ability to create sustainable value for shareholders and customers alike.
Looking ahead
Al-Marzouq pointed out that, in the coming phase, the Group will continue to focus on strategic priorities. These include maintaining a strong financial position, improving asset quality, increasing income, enhancing expenditure efficiency, advancing digital infrastructure and services, elevating customer experience and capitalizing on market opportunities, all within a solid risk management framework.
International network
Al-Marzouq stressed the Group's continuous efforts to cement its position as a pioneer in Islamic finance with an influential regional and global presence, capitalizing on its international network spanning 10 countries with over 600 branches. He added that this global footprint represents a key strength in the Group's business model, not only in terms of scale and presence, but also in terms of income and financing diversification, as well as operational resilience.
First locally and fifth regionally
Al-Marzouq noted that KFH maintained its position as the largest listed company on Boursa Kuwait by market capitalization, at approximately KD 15 billion. It also ranked fifth among banks in the Middle East and is the only Kuwaiti bank listed among the top five in S&P's "Top 20 Middle East and Africa Banks". This reflects KFH's status as a dominant global Islamic banking force based in Kuwait.
Empowering the local economy
Al-Marzouq emphasized KFH's pivotal role in driving the Kuwaiti economy and local market forward and providing prudent financing solutions to the corporate sector. This strategy aligns with the bank's focus on advancing corporate banking and institutional financing while delivering financial services to the retail and SME sectors. He emphasized that the Bank considers this role a core element of its mission as a leading national financial institution, combining commercial growth with economic responsibility.
Social role and sustainability
Al-Marzouq emphasized that KFH continues to strengthen its social impact through major community contributions, most recently donating KD 2 million to a national debt-relief initiative organized by the Ministry of Justice. He highlighted that KFH has previously contributed more than KD 20 million toward settling the debts of thousands of defaulting individuals, noting that the bank's cumulative commitment to debt relief has reached approximately KD 61 million.
Al-Marzouq noted that KFH's strategic contributions to social responsibility earned it the "World's Best Islamic Bank for CSR" award from Global Finance. Furthermore, KFH was named "Best for Sustaining Communities - Middle East" award recognizing its leadership in sustainable practices and its commitment to EESG standards.
Operational efficiency and strong financial position
KFH Group Chief Executive Officer Khaled Yousef Al-Shamlan stated that Q1 2026 financial indicators were supported by growth in net financing income, net fees and commissions, and increased operating income, in addition to the ongoing contribution of the international subsidiaries in supporting profitability and diversifying income across the Group.
He further mentioned that the financial results reaffirm the Group's capacity to accomplish balanced and measured performance that combines maximizing value for shareholders and enhancing operational efficiency. Additionally, these results underline the strong financial position and high solvency, despite regional developments. He indicated that KFH adopts a solid and effective risk management policy, enhancing its resilience to navigate challenges, face material risks, ensure operational continuity, and support economic growth. This policy also capitalizes on technological infrastructure which drives operational sustainability and deliver long-term profitability.
Diversified financing solutions
As part of diversifying financing solutions, Al-Shamlan highlighted the successful issuance of $1 billion in senior unsecured Sukuk with a five-year maturity, marking the third issuance under KFH's $4 billion sukuk program. He explained that the issuance reinforces the Group's financing capacity to efficiently finance its operations. It also provides more flexibility in managing the financing structure and supports the Group's role in financing infrastructure projects and productive economic sectors within Kuwait, while supporting clients' regional and international expansion. "KFH has strengthened its leadership in the primary and secondary markets for the International Islamic Liquidity Management (IILM) Sukuk Program. KFH secured the top position as both a Primary and Secondary Dealer".
Uninterrupted operational efficiency
Al-Shamlan noted that to expand market share and elevate service quality, KFH has continued to deliver competitive digital solutions for corporate and retail customers through its various digital channels and smart branches. He emphasized the resilience of KFH's operational processes, which ensure high efficiency and the regular provision of all banking services under various conditions. These results are underpinned by proactive, flexible planning designed to maintain performance stability and seamless service continuity.
Investing in human resources
Al-Shamlan emphasized the priority KFH places on its workforce, highlighting a steadfast commitment to developing employee capabilities and nurturing their professional and academic potential. Recognizing staff as the cornerstone of the bank's success, he noted that receiving several prestigious awards from the Brandon Hall Group in Human Resources underscores the bank's successful investment in human capital and its leadership on both a local and global levels.
Global recognition
Al-Shamlan stated that KFH's excellence has been widely recognized globally, earning several prestigious awards during the first quarter of the year. These include "Best Bank in Kuwait" from EMEA Finance, "Most Valuable Bank" from Forbes Middle East, "World's Best Islamic Bank" from Global Finance, and "Safest Private Bank in the Middle East" from Euromoney, in recognition of its leadership in private banking and wealth management. The Group also received several other international accolades.
Kuwait Times
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