Kuwait city: Kuwait Finance House (KFH) has solidified its position in the banking sector by reporting a net profit of KD 342.1 million (approximately USD 1.1 billion) for the first half of 2025, equivalent to 19.23 fils per share.
According to Kuwait News Agency, KFH Chairman Hamad Abdulmohsen Al-Marzouq stated that net financing income increased by 8.7 percent year-on-year, reaching KD 607.3 million. Operating income rose by 6.4 percent to KD 876 million despite the lack of last year's one-off gain from selling KFH Bahrain.
The net operating income grew by 7.9 percent to KD 566.7 million, and the cost-to-income ratio improved to 35.3 percent from 36.2 percent the previous year. Financing receivables increased by 7.1 percent to KD 20.4 billion from the end of 2024, and total assets grew by 4.9 percent to KD 38.5 billion. Shareholders' equity rose to KD 5.6 billion, while customer deposits increased by 2.7 percent to KD 19.7 billion, with the capital adequacy ratio at 18.01 percent, surpassing regulatory requirements.
Reflecting the strong performance, the board approved an interim cash dividend of 10 fils per share. Al-Marzouq attributed the record profits to a robust performance across domestic and international operations, despite a challenging environment and geopolitical tensions. He emphasized KFH's role in financing large-scale development projects across various sectors, reinforcing its position as a leader in Sharia-compliant financing.
The bank's regional integration strategy advanced with the rebranding of Ahli United Bank Bahrain as KFH Bahrain, part of a broader effort to unify the bank's identity. KFH also enhanced its sustainability efforts, with increased green financing volumes and comprehensive ESG policies. The bank retained an "A" rating from MSCI and remained a constituent of the FTSE4Good Index.
Digital innovation remains a key growth driver, highlighted by the launch of "Fahad," Kuwait's first AI-powered virtual assistant employee, and updates to the KFHOnline app, now offering over 200 digital services. KFH Group CEO Khaled Yousef Al-Shamlan noted the bank's expanding market share, driven by innovative solutions such as lending against gold account collateral, and underscored the commitment to digital banking.
The bank introduced a virtual rewards prepaid card and a "tap to phone" payment service for merchants, enhancing customer experience and diversifying revenue. These initiatives have received international recognition, with The Banker magazine naming KFH as Kuwait's best-performing bank in 2025, and Euromoney awarding it the Middle East's Best Islamic Bank. Global Finance also recognized KFH as the Best Bank for Financial Institutions in the region.
Human capital development is central to KFH's strategy, evidenced by promoting Kuwaiti nationals to senior leadership positions after intensive training with local and international partners. With record profitability, a strong capital base, and a digital and regional expansion plan, KFH is positioned to capitalize on growth opportunities domestically and internationally, sustaining its leadership in Kuwait's banking landscape.