Chairman of Kuwait Finance House (KFH) Hamad Abdulmohsen Al Marzouq announced that KFH achieved a net profit of KD 168.1 million for the first quarter of 2025 for shareholders, representing an increase of 3.2% compared to the same period last year, and an increase of 41.4% compared to the fourth quarter of last year.

Earnings per share for the first quarter of 2025 reached 9.77 fils; an increase of 3.1% compared to the same period last year.

Net financing income for the first quarter of the year reached KD 318.9 million; an increase of 21.1% compared to the same period last year.

Total operating income for the first quarter of the year increased, supported by an increase in all core activities to reach KD 454.9 million; an increase of 15.9% compared to the same period last year.

Net operating income for the first quarter of the year reached KD 295.7 million; an increase of 19.4% compared to the same period last year.

Financing receivables increased as of the end of the first quarter of 2025 to reach KD 19.3 billion; an increase of 1.1% compared to the end of last year.

Total assets increased as of the end of the first quarter of 2025 to reach KD 36.9 billion; an increase of 0.4% compared to the end of last year. Shareholders’ equity amounted to KD 5.5 billion at the end of the first quarter of 2025.

Depositors’ accounts increased as of the end of the first quarter of 2025 to reach KD 19.5 billion; an increase of 1.3% compared to the end of last year.

In addition, the capital adequacy ratio reached 19.38% which is above the limit required by regulators. This ratio confirms the solid capital base of KFH.

Sustainable profits

In a press release, Al Marzouq stated that KFH`s Q1 2025 growth in key financial indicators demonstrates the successful execution of the strategy approved by the bank`s Board of Directors. He further noted that this performance, achieved despite a complex operating environment and market shifts driven by regional and global economic developments, underscores the strength of KFH`s comprehensive and integrated business model. Al Marzouq added that the growth in all key financial indicators and balance sheet items confirms KFH`s progress in generating higher-quality and sustainable profits.

Al Marzouq highlighted that KFH`s financial performance demonstrates its consistent ability to grow profits sustainably. This success validates the effectiveness of KFH`s efforts at every level in attaining its objectives. These objectives include boosting profitability, sustaining high growth, rationalizing expenses, elevating service quality, embracing technology and digitization, and enriching customer interactions through well-defined and carefully managed approaches, rigorous and measurable professional standards, and the capacity for prompt and effective responses to market changes. Furthermore, these efforts take into account increasing competition and evolving customer expectations.

He also commended the experienced management for their skill in navigating the business environment and boosting confidence in the bank. 

Giant banking entity

Al Marzouq explained that the expansion abroad had gained significant momentum and brought about a qualitative transformation in KFH`s growth strategy, turning it into a substantial banking entity with a presence in eight countries worldwide. These notably include Kuwait, Bahrain, Egypt, Turkey, the UK, and Germany, supported by an extensive network of over 600 branches. He also noted that KFH continues to lead all banks and companies listed on Boursa Kuwait, with a current market capitalization near to KD 13 billion.

"KFH`s recently launched "Beyond Horizons" visual identity reflects the bank`s substantial growth, achievements, global reach, and future ambitions. This new identity also underscores KFH`s ongoing commitment to technological advancement, digital innovation, and its leading position in Islamic finance," he added.

Supporting the national economy

Underscoring KFH`s pioneering position, Al Marzouq stated that the bank will maintain its support for the Kuwaiti market and national economy. This includes providing financing to corporates within established credit guidelines, as well as its continued focus on corporate banking, corporate and retail financing. KFH actively collaborates with relevant authorities to support and finance small and medium-sized enterprises (SMEs). Recognizing the vital role of these businesses in Kuwait`s economy, job creation, and youth employment, KFH holds the largest SME financing portfolio in the market by the number of beneficiaries.

Green Sukuk

Al Marzouq highlighted KFH`s ongoing commitment, via its investment arm KFH Capital, to issue more Sukuk for both governments and companies globally. He also stressed a particular focus on green Sukuk, aligning with KFH`s broader strategy for sustainability and the adoption of ESG standards.

Social leadership

Highlighting KFH`s significant societal impact, Al Marzouq noted the progress achieved through numerous strategic social contributions recently. Key initiatives include a KD 15 million pledge to establish a cardiac center at Mubarak Al-Kabeer Hospital in partnership with the Ministry of Health, and a KD 2 million donation to the Ministry of Social Affairs` debt relief campaign. Previously, KFH also contributed over KD 20 million to settle insolvent individuals` debts in collaboration with the Ministry of Justice.

KFH Group Chief Executive Officer, Khaled Yousef AlShamlan

Solid financial position

KFH Group Chief Executive Officer, Khaled Yousef AlShamlan stated that the Q1 2025 financial indicators demonstrated balanced performance and significant financial strength, showing notable improvements in solvency and growth compared to the same period last year. He added that increased and diversified operating income, along with solid performance across most balance sheet items, highlight the Group`s creditworthiness, reliability, and diverse avenues for future growth and expansion.

Diverse financing streams

AlShamlan highlighted the successful issuance of a 5-year, US$1 billion Senior Unsecured Sukuk under KFH`s US$4 billion Sukuk Program. This issuance aims to finance KFH`s operations and diversify its funding sources. Furthermore, it will enable KFH to increase its financing and investment capabilities, support infrastructure projects and local productive economic sectors, and assist customers with their regional and global expansion plans.

Qualitative digital solutions

AlShamlan stated that KFH is focused on increasing its market share and improving service quality by consistently offering qualitative and competitive digital solutions through KFHOnline (both mobile and web), XTMs, and KFH Express. He detailed that KFH offers about 200 electronic services, including online payments, online account opening, instant printing of all bank card types, gold trading, opening deposit and account, instant cheque and card printing, and QR code-based cardless withdrawals via mobile, along with many other financing and banking services that are quick, simple, and secure.

Human resources are central to achieving success

"KFH underscores the paramount importance of its employees, actively working to boost their skills, performance, and academic and professional growth. Viewing them as central to its success, KFH remains committed to fostering their innovation in services and solutions that improve customer experience, exemplified by the annual "Innovation Challenge". Moreover, to foster employee development, KFH offers educational scholarships alongside extensive in-class and online training programs. KFH also focuses on nurturing Kuwaiti youth for leadership roles, empowering them to drive development," AlShamlan said.

He pointed out that KFH is keen on empowering human talents and competencies, noting that the bank celebrated over 230 outstanding staff members at the 2024 Qadha program company. This program, the first of its kind in Kuwaiti banking, has recently earned global recognition with a Gold Medal from the prestigious Brandon Hall Group for Best Advance in Employee Recognition Program at the global level.

Global recognition

In appreciation of its exceptional efforts, AlShamlan said that KFH received global recognition, scooping around 15 awards for the current year from world-class entities and institutions. Most notable of these awards are: “Best Islamic bank in the Middle East” and “Best Bank in Kuwait” from EMEA Finance Magazine. Additionally, KFH attained ISO 22301 certification for its Business Continuity Management Systems (BCMS), reflecting the bank`s proactive capacities and preparedness to face potential risks, in addition to its sustainability in operations and operational efficiency.

Thanks and appreciation

AlShamlan commended the support of the Board of Directors, the Central Bank of Kuwait and the regulatory authorities for supporting the banking sector. He also praised the efforts of Executive Management, all employees, partners, and stakeholders for their key role and stressed the continuous efforts to maintain KFH`s leading position locally and globally.