Kuwait Finance House 2Q profit 174M dinars (est. 170.5M dinars)

Kuwait Finance House 2Q profit 174M dinars (est. 170.5M dinars)

Kuwait Finance House (KFH) has announced its second quarter 2025 earnings, reporting a profit of 174 million dinars, which is an estimated 170.5 million dinars. This performance indicates a significant increase in profitability compared to the same period last year.

The financial results, presented during an analysts' conference call on July 27, 2025, highlighted several key areas of growth and improvement. The bank's net profit attributable to shareholders for the first half of 2025 reached 174 million dinars, a substantial increase from the previous year's 124 million dinars. This growth was primarily driven by higher net financing income and a robust performance in core banking activities.

Operating income for the first half of 2025 showed a notable increase, reaching 46.3 million dinars compared to 41.9 million dinars in the first half of 2024. This growth can be attributed to a 10% increase in total assets, which reached 4.19 billion dinars as of June 30, 2025. The increase in total assets was driven by growth in financing and investment portfolios.

Customer deposits also registered a double-digit growth of 34%, reaching 2.84 billion dinars as of June 30, 2025, from 2.12 billion dinars in the same period last year. This growth underscores the bank's ability to attract and retain customers, indicating strong market confidence in its services.

Despite the impressive growth, KFH has maintained favorable capital buffers, with a total Common Equity Tier 1 (CET1) ratio of 21.96% as of June 30, 2025, in line with Central Bank of Kuwait (CBK) Basel III regulations. This robust capital position provides a solid foundation for future growth and resilience.

Fitch Ratings affirmed KFH's long-term ratings at 'A' with a stable outlook, reflecting the bank's strong performance and the stable outlook of the Kuwaiti sovereign ratings. The stable outlook indicates that KFH is well-positioned to continue its growth trajectory without significant changes in its risk profile.

The earnings call also highlighted the bank's strategic initiatives, including operational refinements, deeper customer relationships, and an expanded digital presence. These initiatives are aimed at enhancing operational effectiveness, diversifying revenue streams, and maintaining a competitive edge in the financial sector.

In conclusion, Kuwait Finance House's second quarter 2025 earnings reflect a strong performance with significant growth in profitability, total assets, and customer deposits. The bank's robust capital position and stable long-term ratings further underscore its financial health and stability. Investors and financial professionals can expect continued growth and value creation from KFH as it executes its strategic initiatives.

References:
[1] https://www.marketscreener.com/news/kuwait-international-bank-k-s-c-p-transcript-of-the-analysts-conference-a-2qa-2025-ce7c5fd8dd88f126