KFH posts ‘historic’ net profit for shareholders of KD 162.1m for Q1 ’23, an increase of 133.2%

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KUWAIT CITY, April 30: Chairman of Kuwait Finance House (KFH) Hamad Abdulmohsen Al-Marzouq said that KFH has, by the grace of Allah, reported historic net profit of KD 162.1 million for the first quarter of 2023 for KFH shareholders; an increase of 133.2% compared to the same period last year, taking into consideration the benefits of the acquisition.

Hamad Al-Marzouq, KFH Chairman and Abdulwahab Al-Roshood, Acting Group CEO

Earnings per share for the first quarter of 2023 reached 11.06 fils; an increase of 67.6% compared to the same period last year.

Net financing income for the first quarter of the year reached KD 226.0 million; an increase of 42.1% compared to the same period last year.

Net operating income for the first quarter of the year reached KD 251.2 million; an increase of 69.5% compared to the same period last year.

Financing receivables as of the end of the first quarter of 2023 reached KD 19.2 billion, i.e., an increase of KD 318.8 million or 1.7% compared to the end of last year.

 Total assets as of the end of the first quarter of 2023 reached KD 36.9 billion i.e., at the same level as the end of last year. The same applies to the shareholders’ equity, which amounted to KD 5.3 billion at the end of the first quarter of 2023.

Depositors’ accounts as of the end of the first quarter of 2023 reached KD 23.4 billion; an increase of KD 962.3 million or 4.3% compared to the end of last year.

 In addition, the capital adequacy ratio reached 17.50% which is above the minimum limit required by regulators. This ratio confirms the solid financial position of KFH.

Strong Growth

Al-Marzouq said that the strong growth KFH achieved in all financial indicators during the first quarter of 2023 confirms the successful and efficient strategy of the Bank. He added that KFH successfully maintained remarkable ratios in terms of profitability, ROA, ROE, improving asset quality, the coverage ratio of provisions for non-performing debt, cost-to-income ratio as well as all key financial indicators.

Al-Marzouq explained that “KFH enjoys solid capital base and high liquidity ratios that support its business growth and credit strength. With around KD 11 billion market capitalization, KFH topped the largest listed companies on Boursa Kuwait in terms of market capitalization”.

Clear Strategy

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 the fields of digitization, applying artificial intelligence, innovation in financing and investment products and solutions, increasing investment in green Sukuk in the total financing portfolio, expanding linking investments to sustainable development goals, optimal investment in human resources and enriching knowledge, supporting entrepreneurship and youth, and providing corporate banking, supporting SMEs, and developing harmony between the Group’s banks to boost KFH’s leading position globally.

He added that the growth resulted from the successful acquisition of Ahli United Bank constitutes a driving force for KFH to achieve its ambitions, not to mention moving forward in its regional and international expansion to record significant growth ratios in profits and in customer service level.

Prominent Societal role

Al-Marzouq explained that KFH plays a prominent societal role characterized by diversity and inclusiveness, in a way that reinforces the implementation of sustainability criteria, indicating that KFH has implemented strategic social initiatives with added value and a real positive impact on society. The initiatives, for example, include KD 20 million debt settlement of defaulting debtors, KD 8 million reconstruction of Al Mubarakiya, and support for the “Kuwait is by your side” campaign to relief those affected by the earthquake in Turkiye and Syria with an amount of US$20 million, in addition to signing various agreements with social welfare organizations to support its various social and relief efforts inside and outside Kuwait.

Profit maximization

KFH Acting Group CEO, Abdulwahab Iesa Al Rushood said that “the recent financial results and the double-digit growth maintained by KFH for several years came as a result of the optimal implementation of KFH strategy. This success was reflected in the strong operational performance, the growth in operating income, financing portfolio, and customer deposits, return on equity, optimization, adherence to applying best responsible banking practices, risk management, balanced priorities, and strengthening the bank’s financial solvency and creditworthiness”.

Leadership in digitalization

Al Rushood pointed out that KFH continues to lead in digital transformation, achieving a remarkable growth in the customers’ use of digital banking services through KFHonline on mobile and website, where the rate of increase in usage in Q1 2023 compared to the same period of the previous year reached about 43%. He also stressed that KFH will continue to lead the competition and be unique in offering innovative financial solutions that meet customers’ aspirations and add to KFH’s leadership locally and globally.

Talent acquisition

Al Rushood said that KFH has qualified talents and personnel that are able to implement the strategic goals of the bank. Indeed, the successful talent acquisition and development strategy of KFH resulted in having the largest number of Kuwaiti employees at the level of Kuwaiti banks and all private sector institutions, while the percentage of attracting Kuwaitis for new appointments reached about 100% in recent years.


Al Rushood stressed the continued application of transparency, environmental standards, social values, governance, financial inclusion, empowering women and expanding their representation in KFH’s workforce, and increasing green and sustainable financing efforts as part of the integrated sustainability strategy adopted by the bank, in which it has made great strides. He also indicated that KFH signed a Memorandum of Understanding with the United Nations Development Program (UNDP) to support sustainability efforts, and launched the (Keep it Green) program, which implements several sustainability initiatives under its umbrella, as well as KFH being the first bank in Kuwait to receive the GSAS-Gold Level certificate.

Global recognition

Al Rushood pointed out that KFH received global recognition for its outstanding innovative products and services, reliability, broad geographical outreach, digital development, solid financial position, and its strong brand. Accordingly, KFH won various awards, most notably: “Best Islamic Bank in the Middle East”, “Best Bank in Kuwait” and the Sustainability award in the Middle East from EMEA Finance magazine, as well as “Best Digital Offering in Kuwait” award from Islamic Finance News (IFN), in addition to many prestigious awards. In conclusion, Al Rushood expressed his confidence in continuing the strong and positive results, appreciating the trust of shareholders and customers and the support of the Board of Directors. He also thanked the regulatory authorities and praised the efforts of employees and all partners and stakeholders and emphasized that KFH is keen to reinforce its leadership worldwide.

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