Chairman of Kuwait Finance House (KFH) Hamad Abdulmohsen Al Marzouq said that, by the grace of Allah, KFH has reported historic net profit of KD 601.8 million attributable to the shareholders of the bank for the year ended 2024; an increase of 3.0% compared to 2023. 

Earnings per share reached 36.37 fils for the year 2024, an increase of 3.0%, compared to 2023.

 Net Financing income for the year ended 2024 reached KD 1,147.0 million; an increase of 18.7% compared to 2023. Net operating income for the year ended 2024 reached KD 1,030.7 million, an increase of 9.0% compared to last year.

Financing receivables reached around KD 19.1 billion, driven by the sale of KFH-Bahrain and fluctuations in FX in 2024.

Total assets reached KD 36.7 billion for the year 2024. Total shareholders’ equity reached KD 5.5 billion in 2024, an increase of KD 203.1 million, or 3.8% compared to last year. Depositors’ accounts reached KD 19.2 billion for the year 2024. 

The capital adequacy ratio reached 19.89% for the year 2024, which is above the minimum requirement, compared with 18.18% as of December 31, 2023.  This demonstrates KFH`s strong capital base.

The Board of Directors considered the distribution of cash dividends to shareholders of 22% (including 10% in H1 2024). The Board of Directors also considered the distribution of bonus shares of 8% after the approval of the General Assembly and the competent authorities.

Historic financial results

Al Marzouq said that during 2024, KFH succeeded in achieving a solid financial performance by reporting record annual financial results. KFH also achieved growth in operating income, profits, financing portfolio and all key financial indicators. The Bank also succeeded in achieving the strategic objectives and enhancing the Group’s leading standing after the completion of the largest-ever merger project in the Kuwaiti banking sector, and the successful integration of operations with the (formerly) Ahli United Bank – Kuwait (AUBK) as part of its landmark cross-border acquisition of Ahli United Bank - Bahrain, one of the largest deals in the region. This historic move paved the way for the creation of a giant financial entity, with a reach spanning 11 countries worldwide through a large international network of around 615 branches. It also paved the way for KFH’s ambition of becoming one of the world's top 100 banks within the next decade.

The highest market share

Al Marzouq added that KFH tops all banks and companies listed on Boursa Kuwait with a current market cap approximating KD 13.6 billion. KFH also achieved a remarkable feat, ranking as the leading Kuwaiti company and tenth in the Middle East on Forbes`s annual ranking of Top 100 Listed Companies for 2024.

USD1 billion Sukuk

Al Marzouq mentioned the successful issuance of a 5-year Senior Unsecured Sukuk of $1 bn, the second issue under KFH $4 bn Sukuk Program. He explained that the aim of the Sukuk issuance is to enhance KFH’s long-term funding sources, in addition to financing its overall operations.

Promoting the future of Islamic Finance

He noted that the Group has demonstrated its capabilities in promoting the future of Islamic finance worldwide. This is evident in the successful conversion of Ahli United Bank in Bahrain, UK, and Egypt into Islamic banking in a record time and high efficiency.

Building a sustainable banking model

Al Marzouq further noted that KFH continued its endeavors in building a sustainable banking model within the (ESG) framework, noting the inclusion of KFH in the FTSE4Good Index Series. KFH was also awarded “A” rating by MSCI ESG Index.

He also mentioned KFH’s participation in the sixteenth session of the Conference of the Parties (COP16) to the United Nations Convention to Combat Desertification (UNCCD). The Bank also signed the first-of-its-kind Global Takaful Alliance agreement with the United Nations Development Programme (UNDP) and released the first-of-its-kind Carbon Footprint report in Kuwait’s banking sector. KFH continues to issue its sustainability reports, reflecting its commitment to environmental leadership and responsible banking.

Prominent role in the local economy

Al Marzouq noted that KFH played a prominent role in supporting the local economy and contributed to the development of the infrastructure by financing large scale projects across various sectors. KFH also strengthened its role, at the banking level in Kuwait, as a strategic partner of small, medium-sized enterprises where many of them began their success story by financing granted by KFH.

Solid financial position

Meanwhile, KFH Group Chief Executive Officer, Khaled Yousef AlShamlan, said that KFH’s solid operating performance led to growth in operating income, profits, financing portfolio and all key financial indicators. He noted that KFH maintained its solid balance sheet and enhanced the Group`s financial position.

He pointed out that KFH continued its efforts to achieve financial solidity and sustainable growth, capitalizing on the resilient business model, assets quality, abundant liquidity, continuous diversification of financing and wide geographical spread in different markets worldwide, most prominently Kuwait, Bahrain, Turkey, Egypt, UK and Germany.

Expanding Green finance scope

AlShamlan revealed that KFH increased investment in green Sukuk with a total investment of $653.2 million in 2024, an increase of 162.3% compared to last year ($249 mn in 2023).

He added that KFH maintained its top 3 position in the IILM sukuk primary dealer list and continued to be the first ranked IILM secondary market dealer for the 4th consecutive year amongst several international and regional banks, affirming KFH’s position as a core player in the short-term IILM Sukuk market.

Digital Transformation

AlShamlan stated that KFH continued its innovative streak, developing digital financial solutions tailored to the needs and aspirations of its customers. The Bank also implemented numerous projects of services and products and finance. It developed the technological infrastructure, cybersecurity defenses and AI technology adoption, and cooperated with Fintech companies.

He added that “tam” bank is Kuwait’s only fully Sharia-compliant digital bank, offering a unique and modern banking experience. tam’s success was recognized by several industry-leading awards. Most prominent of which is Euromoney’s “Best Digital Bank in Kuwait” award.

Empowering human talents

AlShamlan highlighted KFH’s distinctive role in empowering the national talents and competencies, noting that the Bank offered more than 115,000 training hours to about 4 thousand employees. Additionally, 26 managers across the Group participated in the Building Leadership Excellence program. 19 employees were accepted in KFH scholarship program, and 39 employees graduated from Forssah program for recent graduates. In recognition of these efforts, KFH received 13 prestigious global awards in Human Resources from the renowned Brandon Hall Group.

Social responsibility

AlShamlan indicated that KFH succeeded in launching value-added community initiatives that catered to various segments of society. These initiatives encompassed supporting community capabilities, caring for individuals with special needs, launching awareness campaigns, safeguarding the environment, supporting sustainable practices, empowering the youth, in addition to supporting innovation and various health and sport initiatives.

He also mentioned commencing the reconstruction project of the damaged area in Al Mubarakiya.  The contract, signed with the project’s contractor and Kuwait Municipality, involves reconstructing approximately 17 buildings, along with the development of some neighboring structures with an estimated cost of around KD 8 million. KFH’s efforts also encompassed various strategic initiatives in social responsibility.

47 prestigious awards

In appreciation of its exceptional efforts, AlShamlan said that KFH received 43 awards and 4 rankings at the Group level from different global and regional entities.  Most notable of these awards are: “World’s Best Islamic Financial Institution” Award from Global Finance magazine, “Kuwait's Best Bank” and “Kuwait's Best Bank for ESG” from Euromoney. In addition, KFH was named “Bank of the Year – Kuwait” by The Banker and was awarded with the “Corporate Social Responsibility – Middle East” award from EMEA Finance Magazine.

Thanks and appreciation

AlShamlan commended the support of the Board of Directors 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.