Kuwait Finance House (KFH) achieved record net profit of KD 584.5 million ($1.9 billion) for the year ended 2023, an increase of 63.4 % compared to 2022.
The historic profits are the highest-ever recorded in the Kuwaiti banking sector of which government and semi-government share represented KD 224 million. This is higher than the share during the pre-acquisition phase at KD 68.6 million, an increase of 50%.
According to a press release published by KFH, the organisation’s warnings per share reached 38.49 fils for the year 2023 (after the distribution of the acquisition shares), an increase of 29.6%, compared to 29.7 fils in 2022.
Net Financing income for the year ended 2023 reached KD 965.9 million; an increase of 20.7% compared to last year, while net operating income for the year ended 2023 reached KD 945.4 million, an increase of 30.7% compared to 2022.
Total assets increased to reach KD 38.01 billion, an increase of KD 1.04 billion or 2.8% compared to last year, and total shareholders’ equity reached KD 5.3 billion in 2023. Depositors’ accounts reached KD 21.8 billion, an increase of KD 782.4 million or 3.7% compared to last year.
Return on average tangible shareholders’ equity reached 20.5% (before synergies) as of 31 December 2023. It is the highest return on shareholder’s equity in the banking sector.
KFH Chairman, Hamad Abdulmohsen Al-Marzouq commented on the results, “High liquidity ratios, solid capital base, and strong operating performance resulted in growth in operating income, profits, financings portfolio, and all key financial indicators.”
KFH is currently in the process of completing the merger by amalgamation with the Ahli United-Kuwait, one the final acquisition stages leading to numerous benefits for both parties and the overall banking industry in Kuwait.
In light of the positive results, KFH’s Board of Directors has proposed cash dividends to shareholders of 10 fils per share for the remaining profits until the end of 2023, in addition to 10 fils in H1 2023, totaling 20% for the year 2023, compared to 15% in the previous year.
The Board of Directors also recommended the distribution of bonus shares of 9% of the issued paid capital.
