KUWAIT CITY, Apr 22: 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.‏