Kuwait City, Mar 07: In an interview with Global Finance magazine, Kuwait Finance House (KFH)’s Acting Group Chief Executive Officer, Abdulwahab Iesa Al Rushood said that KFH’s indicators reflected solid financial soundness in terms of assets, capital adequacy and liquidity ratios. He added that KFH achieved KWD 584 million (USD 1.9 billion) in net profit, a remarkable 63% more than in 2022 and the highest-ever profit in the history of Kuwait’s banking sector. Total assets reached KWD 38 billion (USD 123.2 billion), representing an increase of KD 1.04 billion compared to last year.

During the interview, Al Rushood discussed the latest developments of Ahli United Bank (AUB)’s acquisition, saying that Ahli United Bank-Bahrain completed its conversion into Sharia- compliant bank. “The bank has officially received the approval from the Central Bank of Bahrain (CBB) as a licensed Islamic Bank. This means the bank will offer an integrated range of sharia-complaint products and services, including retail and corporate services, saving and investment products, in addition to trade finance and wealth management solutions. KFH has recently announced the successful completion of its merger with Ahli United Bank – Kuwait (AUB-Kuwait), including the stock swap of KFH capital's increase with the shareholders of AUBK. This historic merger officially establishes KFH as the continuing entity and AUB-Kuwait as the merged entity.”

He added: “Following the acquisition, KFH has become the largest bank in Kuwait and the second largest Islamic bank in the world. Today, KFH has activities in strategic global markets including Kuwait, Bahrain, Turkey, Saudi Arabia, Malaysia, Germany, Egypt and the United Kingdom, as well as other regions.”

Al Rushood confirmed that KFH is always on the lookout for any opportunity that can add value to its shareholders and customers.

Speaking about the banking sector outlook in 2024, Al Rushood expects the Kuwaiti operating environment to remain stable, adding that Kuwait's banking market is experiencing a surge in digital banking solutions, as customers increasingly opt for convenient online banking solutions, thus the investment in digital solutions will continue to grow at a fast pace. In addition, there will be further focus on green finance products and sustainability initiatives.

He noted: “The future of banking in Kuwait and the region is poised for significant advancements driven by the integration of robust data analytics and AI applications. Banks are likely to leverage data-driven insights to enhance personalized services and streamline operations. Continuous improvement of customer experience through digital channels will be a key focus, fostering a more efficient and user-friendly banking landscape.”

Al Rushood also expects more reliance on AI and robotics as adopting generative AI promises improvements in decision-making, profitability, fraud detection and prevention, and better risk management.