Kuwait Finance House (KFH) has announced it has completed a merger with Ahli United Bank of Kuwait (AUB), the”first merger in Kuwait’s banking sector history”, according to the country’s news agency.
The acquisition officially establishes KFH as the continuing entity and AUB-Kuwait as the merged entity, following the stock swap of KFH capital’s increase with the shareholders of AUBK.Â
“KFH and AUB are now united as a single team, with a unified banking identity and a shared Sharia vision,” said KFH Chairman, Hamad Abdulmohsen Al Marzouq.
“We warmly welcome the AUB teams to their new home at KFH. We look forward to their valuable contributions as they become key members of the KFH team, solidifying our position as the largest bank in Kuwait and the world’s second-largest Islamic bank by total assets, which stood at KD 38.01 billion in 2023.”
KFH holds the top spot for market capitalisation in Kuwait, exceeding KD 12 billion. It also boasts the highest traded liquidity on Boursa Kuwait, surpassing all other listed companies, groups, and banks.
“This merger is not just a landmark for us, but it sets the stage for a new global Islamic banking era led by KFH,” Al Marzouq added. He indicated that the acquisition contributed to boosting KFH’s capability to support national manpower. In 2023, 400 employees were hired, with a nationalisation rate of 100% of the total number of hires.
In 2023, KFH achieved a record net profit of KD 584.5 million attributable to the shareholders, marking the highest profit ever recorded in Kuwait’s banking sector and reflecting a 63.4% increase from the previous year.
