Chairman of Kuwait Finance House (KFH), Hamad Abdulmohsen Al Marzouq said that KFH has, by the grace of Allah, reported a record net profit for its shareholders of KD 461.5 million (USD 1.5 billion) up to the end of the third quarter of 2023, an increase of 124.3% 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 up to the end of Q3 2023 reached 30.81 fils; an increase of 61.1% compared to the same period last year.

Net financing income up to the end of Q323 reached KD 713.9 Million; an increase of 40.4% compared to the same period last year.

Net operating income up to the end of Q323 reached KD 739.8 Million; an increase of 59.7% on the same period last year.

Financing receivables as of the end of Q323 reached KD 19.0 Billion, an increase of KD 155 million or 0.8% compared to the end of last year.

Total assets as of the end of Q323 reached KD 37.1 Billion, an increase of KD 99 million or 0.3% compared to the end of last year.

Also, shareholders’ equity as of the end of Q323 reached KD 5.2 Billion.

Depositors’ accounts as of the end of Q323 reached KD 21.1 Billion, an increase of KD 46 million or 0.2% compared to the end of last year.

In addition, the capital adequacy ratio reached 16.44% which is above the minimum limit required by regulators. This ratio confirms the solid financial position of KFH.

Efficient Strategy

Al Marzouq said that the positive growth in all important financial indicators and the record profits achieved by KFH emphasize the Bank`s successful and efficient strategy and the benefits and significance of the acquisition deal.

He pointed out that KFH maintained good ratios in terms of profitability, ROA, ROE, improving asset quality as well as the coverage ratio of provisions for non-performing debt, cost to income ratio and all key financial indicators.

Al Marzouq explained that KFH has solid credit ratings, high liquidity ratios and strong capital base that support its business growth and financial position locally and globally. It also enjoys wide geographical expansion in Kuwait, Bahrain, Turkiye, UK, Germany, Egypt, Malaysia, and others.

Elements of strength

Al Marzouq stressed that KFH continues its strategy to improve the role of core banking activity in achieving profitability and sustainable growth, keeping pace with developments in digitization, AI and innovation. He also highlighted the importance of investing in human resources, enriching knowledge, supporting entrepreneurship and youth, providing financing solutions and corporate banking, supporting SMEs, as well as enhancing synergy across the Group to boost KFH's leading position globally. Moreover, he emphasized the importance of continuing KFH’s unprecedented role in social commitment and executing strategic community initiatives inside and outside Kuwait.

Sustainability efforts

Al Marzouq explained the vital role of KFH in green finance and linking investments to SDG. He said that in appreciation of its outstanding endeavors, KFH has picked up various awards in sustainability such as Best Islamic Bank for ESG- global category 2023 from Euromoney magazine and Kuwait`s Best Bank for Sustainable Finance award from Global Finance magazine. These Awards are based on a number of criteria including KFH`s evident efforts in applying ESG norms, growth in sustainable instruments and green finance of total financing portfolio.

Financial robustness and credit worthiness

Meanwhile, KFH Acting Group Chief Executive Officer, Abdulwahab Iesa Al Rushood said that there are many factors behind the record results in Q3 fiscal 2023 and the sustainable growth KFH maintained for several years. These include the optimal implementation of KFH’s strategy, robust operational performance, applying best responsible banking practices, risk management, balanced priorities, and strong solvency and creditworthiness.

“As the largest bank in Kuwait, KFH also ranked first among the listed companies on Boursa Kuwait in terms of capital base and market capitalization to reach KD 10.5 billion. This means that KFH has greater ability to support companies and lead giant financing deals.” said Al Rushood.

Digital Excellence

“KFH`s strategy of digital transformation gained significant momentum as the digital initiatives and applications included many aspects with the aim of improving customer experience and meeting customers aspirations and increasing financial inclusion. In addition, KFH offers a comprehensive financial solution at the fingertips of the customer anytime and anywhere through alternative channels i.e., KFH Go branches, KFHonline (mobile application and website), as well as KFH XTM devices.” explained Al Rushood.

He added that at the end of Q3, KFH customers carried out more than 152 million digital banking transactions through KFHonline on mobile and website, with a growth of about 40% compared to the same period last year.

Awards & Recognitions

Al Rushood added that KFH bagged prestigious world-class awards, the most prominent of which were: 2023 World’s Best Islamic Financial Institution and Best Islamic Corporate Bank from Global Finance magazine, Best Islamic Bank in Kuwait, and World Best Islamic Bank for ESG 2023 from Euromoney magazine in addition to three global awards in Human Resources from Brandon Hall Group among many other prestigious awards, according to the criteria and methodologies of each magazine. These awards are in recognition of KFH`s pioneering role, prominent contributions in the Islamic banking industry and in offering distinguished financial solutions and services. 

He stressed the importance of maintaining positive results and praised the trust of shareholders and customers, and the support of the Board of Directors.

He also praised the role of the regulatory authorities and the efforts of staff and all partners and stakeholders and emphasized the necessity to move forward in strengthening KFH’s leadership locally and globally.