In an interview with The Banker magazine, Kuwait Finance House (KFH)’s Acting Group Chief Executive Officer, Abdulwahab lesa Al Rushood, said that KFH ranked first among Kuwaiti banks in terms of profits. The bank reported a record net profit of KD 584.5 million for the year ended 2023; representing an increase of 63.4% compared to 2022.

Al Rushood added that “KFH reported its highest-ever profit, not only in its own history but also the largest within the Kuwaiti banking sector. This achievement is primarily attributed to consolidation of AUB Group`s financial statements for the full year, following the acquisition`s completion in October 2022”.

“In general, the higher profit is mainly from the increase in total operating income, lower provision,” said Al Rushood.

On another front, Al Rushood said that KFH future objectives revolve around further focusing on core banking business for achieving sustainable profitability, moving forward in innovation and digital transformation strategy, expanding customer base, and enhancing their loyalty, promoting harmony and synergy among the Group banks, talent acquisition and retention, empowering staff and creating a culture that encourages digital mindset.

Banking technology

Al Rushood noted that KFH is leveraging cutting-edge technologies in the banking industry such as robotics and AI to streamline back-office operations, utilizing big data analytics for informed business decisions. He added that private blockchain applications are revolutionizing transaction settlements, ensuring efficiency and security. These advancements showcase KFH’s commitment to harnessing frontier and emerging technologies for comprehensive digital transformation.

Tam Digital Bank

Speaking about the digital transformation strategy, Al Rushood mentioned Tam Digital Bank, which KFH launched few months back as Kuwait’s first Shariah compliant digital bank.

“The aim of launching Tam Digital Bank is to complement KFH’s mission with delivering superior innovation and customer excellence. That said, Tam Digital Bank is designed to appeal to the younger audience, early entrepreneurs and those who are looking for a different and innovative banking experience,” said Al Rushood “Tam aspires to make a paradigm shift in the banking sector within the region.”

He added that besides the standard banking services most banks offer, Tam is focusing on the experience and lifestyle of today’s ecosystem leveraging personalization, customer engagement through integrated collection of rewards.

Best services and products

Al Rushood pointed out that KFH is constantly striving to develop and offer the best card payment services and products to customers that exceed their expectations.

He added that the card payment industry is evolving at a very fast pace in terms of technological advancement worldwide, noting that KFH is at the forefront and completely committed to provide customers with the best-in-class product features and with top security levels.

“KFH card customers enjoy the finest loyalty programs such as Baitak Rewards points, airline miles and cashback in partnership with the top local and internationally renowned retailers,” he added.

He went on to say that most of KFH rewards programs provide customers with extra earning for cross-border card payments, saying that the Bank has also enabled most of the digital wallets like Apple Pay, Samsung Pay, Google Pay  to allow customers to follow the payments method trends with the most secure manners.

Sustainability strategy

As the pioneer in the Islamic finance industry, Al Rushood stated that KFH has strategically positioned itself at the forefront of sustainability in Kuwait.

“KFH’s sustainability strategy, deeply embedded in its operations, encompasses over 62 objectives across four critical pillars: Economic, Environmental, Social, and Governance. This comprehensive framework is a testament to our commitment to driving sustainable growth,” said Al Rushood.

He also said that a key innovation in KFH sustainability agenda is the introduction of its Green Financing product. This product is designed to support projects and initiatives that are not only economically viable but also environmentally friendly and socially beneficial. It aligns perfectly with KFH vision to address the current and future needs of the Kuwaiti society through sustainable solutions, thereby creating a positive effect across social and economic dimensions.

On the economic front, he added that KFH objectives are geared towards fostering sustainable economic development that is resilient and inclusive, adhering to the core principles of Islamic finance.

As for the growth outlook, Al Rushood expected the Kuwaiti operating environment to remain stable, saying 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. He also expected further growth in green finance products and sustainability initiatives.