KUWAIT CITY, July 24: Chairman of Kuwait Finance House (KFH), Hamad Abdulmohsen Al Marzouq said that KFH has, by the grace of Allah, reported record net profit for its shareholders of KD 333.4 million (US 1.086 billion) for the first half of 2023, an increase of 141.4% compared to the same period last year. KFH showed its highest-ever quarterly profit in history and the biggest in the Kuwaiti banking sector.

Earnings per share for the first half of 2023 reached 22.03 fils; an increase of 73.3% compared to the same period last year.

Net financing income for H1 23 reached KD 458.5 Million; an increase of 43.2% compared to the same period last year.

Net operating income for H123 reached KD 489.1 Million; an increase of 58.6% compared to the same period last year.

Financing receivables as of the end of H123 reached KD 19.1 Billion, an increase of KD 268 million or 1.4% compared to the end of last year.

Total assets as of the end of H123 reached KD 37.02 Billion, an increase of KD 51.0 million or 0.1% compared to the end of last year.

Also, shareholders’ equity as of the end of H123 reached KD 5.2 Billion.

Depositors’ accounts as of the end of H123 reached KD 22.9 Billion, an increase of KD 459 million or 2.0% compared to the end of last year.

In addition, the capital adequacy ratio reached 16.45% which is above the minimum limit required by regulators. This ratio confirms the solid financial position of KFH.

The Board of Directors approved distribution of an interim cash dividend of 10% to the shareholders.

Record profits

Al Marzouq said that the record profits KFH achieved cement its standing and positively contribute to raising the performance of the Kuwaiti banking sector.

He pointed out that the outstanding profitability ratios confirm the benefits and significance of the acquisition deal and reflect the efficient operational performance, the flexible business model of KFH and the disciplined execution of KFH`s strategy. The distinct ratios also reflect the continuous momentum in all KFH`s business areas and the contribution of operations at the Group level.

Al Marzouq said that KFH showed positive growth in all key financial indicators and maintained good ratios in terms of ROAA, ROAE, improving asset quality ratios as well as the coverage ratio of provisions for non-performing debt, cost to income ratio and other financial indicators.

He added that KFH tops the Kuwaiti banks in terms of assets and market capitalization. It also ranked first among the listed companies on Boursa Kuwait in terms of market capitalization exceeding KD 11 billion. This means that KFH is the largest player in the private sector in Kuwait.

Financial Technology

Al Marzouq said that KFH sustained excellence in developing innovative products and services as well as financial and investment solutions, and in adopting FinTech and AI tools to enhance operations, customer experience, leadership, and market share. 

He noted that KFH succeeded in expanding customers base, achieving growth in operating income, which reflected positively on the H123 financial results.

ESG adoption

Al Marzouq emphasized increasing investment in green finance, expanding ESG-linked investments, contributing effectively to building low-carbon economy for a sustainable future. He indicated that KFH won Best Islamic Bank for ESG- global category 2023 award from Euromoney and Kuwait`s Best Bank for Sustainable Finance in 2023 from Global Finance. KFH received these awards in recognition of its spectacular efforts in adopting ESG principles in all its banking and business activities, the annual growth of sustainability products and green finance, becoming the first Bank in Kuwait to receive the Global Sustainability Assessment System GSAS – Gold Level Certificate in addition to the fruitful partnership with UNDP.

CSR Leader

Al Marzouq emphasized the pioneering role KFH maintains in CSR by supporting added-value initiatives, including health, sport, education, environment, women empowerment, supporting youth and students and people with special needs, as well as enhancing financial literacy, among others.

He indicated that the societal role KFH plays is essential and influential as it keeps executing strategic initiatives inside and outside Kuwait in collaboration with stakeholders, such as signing design and supervision contract for Al Mubarakiya reconstruction project with Gulf Consult Co. It is worth mentioning that KFH contributed around KD 8 million to this project.

Remarkable growth

KFH Acting Group Chief Executive Officer, Abdulwahab Iesa Al Rushood, explained that the remarkable growth KFH achieved compared to the same period last year enhances its local and global standing, supports its financial strength and creditworthiness and its ability to assist companies and lead mega financing deals.

He noted that KFH has solid credit ratings, high liquidity ratios and strong capital base that support business growth and development plans in Kuwait and countries where KFH Group operates including Bahrain, Turkiye, UK, Germany, Egypt, Malaysia, and others.

Digital leadership

“KFH has made great strides in its digital transformation strategy where customers carried out more than 135 million e-banking transactions through KFHonline on mobile and website in H123, with a growth rate of about 40% compared to the same period last year. This noticeable growth confirms KFH`s leadership in offering innovative digital financial solutions that boost customers experience and give KFH a competitive advantage”. Al Rushood said.

High competencies

Al Rushood said that KFH is proud of its young national banking talents and competencies, and the continuous efforts in training and localizing workers and attracting talents among graduates in partnership with public and private universities.

He added that the record financial results of H123 reflect the efforts exerted by KFH staff, the trust of shareholders and customers, and the efficient strategic directions of Board of Directors. He also praised the role of the regulatory authorities and all partners and stakeholders which reinforces KFH`s leadership locally and globally.