Kuwait, March 16th, 2025: Kuwait Finance House (KFH) held its Ordinary and Extraordinary General Assembly meetings, with a nearly 79.684% quorum, and approved distributing the second tranche of cash dividends for the fiscal year ending December 31, 2024, of 12% of the nominal share value (12 fils per share). The 2024 semi-annual cash dividend of 10 fils per share was distributed previously. The AGM approved the distribution of 8% bonus shares to shareholders. Additionally, all items on the agenda for both the Ordinary and Extraordinary General Assembly meetings for the fiscal year ending December 31, 2024, were also approved.

Chairman of Kuwait Finance House (KFH) Hamad Abdulmohsen Al Marzouq said: “On behalf of myself and my fellow members of the Board of Directors of Kuwait Finance House (KFH), I would like to present the 2024 KFH Group Annual Report including major achievements, consolidated financial statements, and other reports.

In 2024, KFH succeeded in executing its strategic vision and key objectives by continuously improving business quality, adopting innovation, technological advancement, sound governance, prudent risk management, digitalization, sustainability, and essential means to achieve the best growth rates. This also included maintaining robust financial performance, compliance with regulatory controls and instructions as well as providing the best services, products, and initiatives to maintain KFH’s leadership and improving the markets where the Group operates. which drives towards achieving KFH Group’s goal of assuming its position among the world’s largest 100 banks within the next ten years.

KFH successfully completed the merger by amalgamation with the Ahli United Bank – Kuwait (AUBK), the largest-ever merger project in the Kuwaiti banking sector. This step was a subsequent phase to the acquisition of the (formerly) Ahli United Bank – Bahrain, one of the largest deals in the region. This move led to the integration of KFH and the (formerly) Ahli United Bank as one entity. Additionally, the operational integration and the migration of systems and customers were successfully completed.  The completion of this phase turned KFH into a giant global banking group that enjoys solvency, competitive performance, and a wide geographic spread with 615 branches spanning 12 countries, most prominent of which are Kuwait, Bahrain, Saudi Arabia, Turkiye, Egypt, United Kingdom, and Germany. With the aim of unifying our business environment, we completed in a record time the conversion of the (formerly) Ahli United Bank in Bahrain, UK, and Egypt to comply with Shari’a principles.

KFH strategy outlined the process of creating a giant financial entity among the world’s largest 100 banks. It also drafted ambitious objectives that are an added value to the local and global economy and align with Kuwait’s 2035 vision. These objectives are reflected positively in most performance indicators. KFH’s market cap is the largest in the Kuwaiti market, ranking high at the Middle East level. Moreover, the harmony in the Group’s performance and its fruitful presence in different regions, i.e. Middle East, Asia, and Europe contributed to achieving KFH’s strategic objectives.

The Group succeeded in achieving a significant leap toward digital transformation in risk management, adopting the latest advancements in artificial intelligence (AI), machine learning, and advanced analytics to enhance risk measurement, monitoring, and early detection capabilities. This was accomplished in accordance with the best global practices, allowing the Group to build effective and developable measures to face unforeseen challenges.

KFH extended its efforts to the recently joined subsidiary banks, resulting in a smooth completion of integration initiatives. These efforts were commended by Moody’s and Fitch. The successful implementation of the Capital Management Program led to a capital adequacy ratio of 19.89% exceeding regulatory requirements.

Reaffirming our commitment to operational excellence and innovation, the Group achieved significant milestones including the successful integration of the Ahli United Bank – Kuwait thanks to the efforts of a dedicated Command Center which ensured operational continuity. Furthermore, several digital improvements were implemented to streamline regulatory processes and renewal of contracts. The Robotic Process Automation (RPA) initiatives in key operations contributed to reducing time and costs, achieving synergies, improving inventory management and usage of the Self-Service Centers for instant card issuance.

The merger was one of the challenges during which the Group Human Resources and Transformation made many influential contributions. The department facilitated a smooth transition for (formerly) Ahli United Bank - Kuwait employees, integrating them into KFH's payroll system and unifying security systems across (formerly) AUBK’s locations.  

By strengthening its capacity to attract top talent, the acquisition and merger enabled KFH to better support the growth of its Kuwaiti cadre, generating new job opportunities for national talents in the local market, and heightening the demand for the national workforce across the Group. As a result, KFH hired (149) employees, with women's representation accounting for (23%) and a (98%) Kuwaitization rate.  

In line with KFH’s commitment toward developing its employees, we offered more than 115,000 training hours for 4,000 employees. Additionally, 26 managers across the Group participated in the Building Leadership Excellence program. KFH accepted 19 employees in its 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, the highest number regionally and globally, from the renowned Brandon Hall Group.

The most important financial statements and indicators for 2024 are as follows:   

KFH, by the grace of Allah, reported a net profit for its shareholders of KD 601.8 million up to the end of 2024, an increase of 3.0% compared to last year. Earnings per share reached 36.37 Fils; an increase of 3.0%, compared to last year.

Net financing income increased to KD 1,147.0 million; an increase of 18.7% compared to last year. Net operating income increased to KD 1,030.7 million; an increase of 9.0% compared to last year. Total assets reached KD 36.7 billion.Depositors’ accounts reached 19.2 billion, while the capital adequacy ratio recorded a rate of 19.89% , 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. considering the distributed returns on investment deposits and saving accounts as shown in the following table:

KFH continued its endeavors by financing companies, assisting them in the success of their business, in addition to financing mega projects at the local and regional levels. In this respect, KFH participated in financing deals totaling about KD 325 million in Saudi Arabia, Qatar, and Egypt. The Bank also participated in syndicated financing deal, funding KD 79 million to an Irish company.

Domestically, KFH played a pivotal role in the local economy by financing large scale projects across various sectors, most notable of which are real estate projects worth KD 313 million. Furthermore, KFH contributed to developing the local infrastructure by offering additional financing, amounting to KD 85 million for the telecommunication industry. KFH also provided another financing worth KD 31 million to strengthen the logistics services sector, including financing the first fiber optic cable manufacturing company in Kuwait (Taihan Factory).

KFH is enhancing its standing in the Kuwaiti banking sector as a strategic partner in the development of micro, small, and medium enterprises, ranking first in this area. In addition to the significant growth in the financing portfolio of this sector, KFH has always been active in improving its customer base. Many SMEs started their successful journey through KFH financing support.

With the aim of diversifying its financing sources and expanding the support of infrastructure projects and economic productive sectors in Kuwait, KFH issued a 5-year Senior Unsecured Sukuk of $1 billion, the first issue under KFH $4 bn Sukuk Program.

KFH continued investing in supporting systems to enhance customer service and experience. Its fruitful efforts resulted in the expansion of our online corporate banking through (eCorp). This included trade finance applications, Tawarruq drawdowns in addition to multiple mobile e-Banking services. KFH’s achievements in the field of corporate banking were appreciated and recognized by prominent global institutions. Global Finance Magazine awarded KFH with the Best SME Bank in Kuwait, Best Islamic Corporate Bank – Global, and Best Islamic Project Finance Provider – Global awards.

The Group enhanced its pioneering role in Sukuk issuance. KFH Capital successfully led and arranged the issuance of $18 billion Sukuk for sovereigns and corporates. The Company also successfully marketed five investment funds: two Ijarah funds, two real estate funds, and a USD money market fund. 2024 was a pivotal year for the digital transformation, marked by the development of an Assets Management System (AMS) and the launch of two other digital initiatives for employees and customers.

As part of its ongoing efforts to offer distinctive products and services, KFH launched several services including Al-Hassad account, and Baitak Concierge service. Moreover, KFH- Turkiye service center has helped over 12 thousand customers. In addition, KFH deployed 13 employees to Turkiye as part of an initiative to promote its customer service for the third consecutive year. KFH also launched its new branches in Jabriya, Rumaithiya and Jaber Al-Ahmad in addition to its first digital bank in the Avenues.

Continuing our leadership in the banking cards market, we launched numerous rewards and bonus points campaigns throughout the year to promote card usage. KFH was awarded two prestigious Mastercard awards: the Highest Penetration of Tokenized Transactions in Kuwait award, and the Highest Volume Growth in Mastercard World Portfolio award.

 Technological solutions and digital innovations were the highlight and major accomplishment of the Group. This success is demonstrated in the remarkable role and high performance of the Information Technology (IT) sector, particularly in fulfilling the merger requirements and contributing to the success of Operational Day One (OD1). The IT team migrated the accounts and products of over 280 thousand formerly AUBK customers, and unified more than 80 systems across the Bank, merging all services and products with their different requirements.  In cooperation with a cohesive team, more than 250 phases and 2000 tasks were completed.

The IT sector implemented numerous projects, developed the technological infrastructure and cybersecurity defenses, and adopted AI technologies. An array of other projects was executed, including instant payment service (WAMD), integration of the corporate system (eCorp) with the Public Authority for Civil Information (PACI) and enabling face ID authentication for eCorp users, integrating T360 system with eCorp system, introduction of the final digital solutions of the CreditLense program, and conducting several system recovery simulation exercises with remarkable success.

KFH also rolled out various innovative digital services and products for the first time in Kuwait. These encompassed instant credit and prepaid card printing service, (D-POS) mobile device for account opening, and the development of more than 500 ATMs. The pioneering digital services also included adding online banking services, most prominently transfers via Western Union network, push notifications, AFAQ transfer service, and KFH Pay money transfer.

To reduce uncertainty in the global economy and enhance our over USD 125 billion assets portfolio, Group Treasury expanded both our financial derivatives portfolio and our financing portfolio across all currencies. We achieved synergies in financing costs and consolidated AUB's portfolio. These objectives exceeded the target by over 12%.

The Group Treasury continued its investment activities in the primary and secondary capital markets, exceeding $13 billion in transactions. The Group Treasury also expanded its transactions in the short-term IILM Sukuk market. It maintained its top 3 positions in the IILM sukuk primary dealer list, in addition to its ranking as the first in the IILM secondary market dealer for the 4th consecutive year. The KFH Group Retail Client activity amounted to $267 million. The Group Treasury transactions exceeded $45 billion. We have doubled our ESG Sukuk share to $653.2 million in 2024 compared to $249 million in 2023; an annual increase of 162.3%.

During 2024, KFH Group bagged 47 accolades from worldwide reputable organizations specialized in monitoring and evaluating prominent banks. In this regard, Tam Digital Bank was recognized with 6 industry-leading awards during its inaugural year. Along with high creditworthiness that has been confirmed by global credit rating agencies, the year 2024 was marked by the inclusion of KFH in key global ratings including ESG indices such “FTSE4Good” Index and “A” rating by MSCI ESG Index. KFH was ranked first in the Kuwaiti banking sector in terms of growth and return on risk for 2024 Top 100 Arab Banks Rankings from The Banker. Additionally, Forbes ranked KFH as the leading listed Kuwaiti company and tenth in the Middle East in terms of market value and profitability. The Bank also secured the top spot on MEED magazine’s list of the top 100 listed companies in the Middle East and North Africa in terms of market capitalization.

We firmly believe that sustaining our operations and ensuring business continuity necessitates expanding the social role of KFH through numerous contributions to community development and sustainability. In this regard, KFH has initiated environmental efforts in partnership with various governmental and private entities. The Bank has also sponsored national initiatives such as the Al-Mubarakiya reconstruction project, assisted defaulted citizens, and supported the Kuwait Food Bank, among other endeavors.

We remain committed to enhancing supervision and monitoring mechanisms, while expediting decision-making processes to keep pace with our aspirations. This ensures a well-studied approach to leveraging new opportunities for growth, balancing risks and returns, and maintaining sufficient levels of capital adequacy, liquidity, high-quality assets, operating income, and net profits. We also strive to uphold our leading position and brand reputation with unparalleled value and excellence.

Finally, I would like to express my sincere gratitude and appreciation to His Highness the Amir of Kuwait Sheikh Mishal Al-Ahmad Al-Jaber Al-Sabah, may Allah safeguard him, His Highness the Crown Prince, Sheikh Sabah Al-Khaled Al-Sabah, and His Highness the Prime Minister, Sheikh Ahmad Al-Abdullah Al-Sabah. Our thanks and appreciation are also extended to the Central Bank of Kuwait and all the regulatory authorities for their constant support to the banking sector in the State of Kuwait.

The Board of Directors would also like to express its sincere gratitude to the esteemed shareholders, customers, KFH Executive Management, and all employees for their efforts and cooperation throughout the year.”

KFH Group Chief Executive Officer, Khaled Yousef AlShamlan,

Meanwhile, KFH Group Chief Executive Officer, Khaled Yousef AlShamlan, said “Throughout 2024, we worked diligently to expand and develop the integrated financial services and products offered by Kuwait Finance House (KFH) Group, incorporating digitization, innovation, and sustainability into our business model and various operations. We ensured that the operating model aligned with the needs and aspirations of our retail and corporate customers across all markets where the Group operates. This alignment was tailored to the unique characteristics, capabilities, and opportunities available in each market.

Merger Success

KFH's successful completion of all merger steps with (formerly) Ahli United Bank - Kuwait (AUBK) was a highlight of 2024. KFH achieved the operational integration of the two banks with high efficiency and in record time, marking a new chapter of success, achievement, and leadership for the bank.

I am proud of the successful, smooth integration and seamless transition for shareholders, customers, and employees. This success benefits customers by leveraging our wide geographic reach in strategically important regional and global markets. In turn, shareholders benefit from enhanced profitability and improved financial performance.

It is noteworthy that the merger - coupled with the conversion of Ahli United Bank operations in Bahrain, the UK, and Egypt into Islamic banking - positions KFH to offer exceptional value to all stakeholders. The merger also leverages emerging opportunities to contribute to the growth of the Kuwaiti banking sector and expand the reach of the Islamic finance industry locally, regionally, and globally.

Despite the challenges, a large team from various sectors and departments successfully completed more than 250 phases, encompassing over 2000 tasks. Accounts and products for more than 280,000 (formerly) AUBK customers were migrated. Moreover, over 80 systems were unified across all sectors of the Bank, streamlining services and products.

Strategy

Our strategic plans during 2024 focused on expanding our role in the Islamic finance industry, emphasizing ambitious objectives that maximize our strengths. These efforts have been directed towards enhancing innovation and digital transformation, which further solidifies the position of KFH within the financial sector both domestically and globally. Through establishing strategic global partnerships and alliances, KFH has effectively financed mega developmental projects, contributing to the promotion of sustainable economic growth in alignment with the United Nations Sustainable Development Goals (SDGs) aiming to extend Takaful insurance to 100 million farmers worldwide. In addition, KFH outlined a sustainability strategy and plans to establish a green financing platform that links Islamic finance with sustainable development projects.

During the year, KFH focused on crafting strategic goals that address current challenges. Measurable indicators were established to track progress towards achieving these goals. This approach yielded tangible results, with numerous indicators demonstrating positive outcomes at the Group level, including its geographical expansion. The strategic plan enabled KFH to achieve significant milestones within a record six months, ensuring the seamless integration of operations between KFH and AUBK. This success marked one of the shortest timelines accomplished in recent years for any of the five large-scale merger banking projects within the Gulf Cooperation Council (GCC) region. Furthermore, these goals facilitated the conversion of subsidiaries in the United Kingdom and Egypt into operations compliant with Islamic Shari’a, opening doors to new opportunities for Islamic banking in the markets of Egypt and UK, which are considered promising avenues for Islamic financial activities.

Human Resources

Group Human Resources and Transformation Department played a significant role in the successful completion of the KFH-AUBK merger, the largest in Kuwaiti banking history. The department facilitated a smooth transition for (formerly) Ahli United Bank - Kuwait employees, integrating them into KFH's payroll system and unifying security systems across (formerly) AUBK`s locations.

The merger contributed to an increase in the national employment rate and the creation of quality job opportunities, particularly given that the merged entity is headquartered in Kuwait. Larger entities generally require a greater workforce, thus increasing the demand for national employment. The new workforce can also contribute to the Group's success in the markets where it operates. The acquisition enhanced KFH's capacity to recruit top talent and support the development of the national workforce. Indeed, KFH hired [149] employees, with women's representation at [%23] and a Kuwaitization rate of [98%]. These achievements were realized by the grace of Allah and the dedication of our human capital.

Globally, KFH received 13 HR international awards for 2024 from the renowned Brandon Hall Group, a leading organization in evaluating and assessing the performance of institutions worldwide. This marks the highest number of awards received by any organization locally and regionally. Furthermore, KFH maintained a strong commitment to significantly investing in the professional and educational growth of its human capital. In this regard, the Group Human Resources and Transformation department effectively delivered over 115,934 training hours to 3,997 employees.

As part of KFH's leadership development initiative, 26 managers participated in the Building Leadership Excellence program this year at the group level. Also, 19 employees were accepted under full sponsorship from KFH in the scholarship program, and 39 employees graduated from Forssah program designed to attract and develop high-achieving Kuwaiti graduates. The Bank also offered online digital transformation courses and continued converting the products-related training into e-learning courses.

To streamline processes and efficiently address employee needs, the HR Help Desk platform has been developed. This platform organizes the process of receiving and fulfilling employee requests, with over 2,500 requests already processed. As for employees’ wellbeing, health insurance coverage benefits for employees and their families have been enhanced. Additionally, the KFH Happiness Team has organized over 18 sports, social, and recreational activities for employees. In recognition of its distinguished employees, KFH honored 180 individuals in H1-2024 through Qadha program, a globally recognized initiative by Brandon Hall.

In line with the Group Human Resources and Transformation focus on families of employees, KFH honored the outstanding high school students of KFH employees for the fourth consecutive year. Additionally, the Arabic language initiative - now in its second year - was organized for the children of employees, with approximately 140 participants.

As part of its social commitment, KFH launched its fourth edition of a tailored training program designed for students with special needs to develop their skills and enhance their expertise in collaboration with the Kuwait Society for the Handicapped. Workshops, seminars, and sessions were also organized at universities and colleges to offer career guidance and advice to students. Additionally, the Bank opened its smart branch in Abu Fatira, the ninth among KFH smart branch series, facilitating banking services and keeping pace with the latest technology.

KFH’s keenness in nurturing employees’ health, professional and family needs, promoting social responsibility and developing its services stems from its goal of becoming one of the world's top 100 banks within the next decade.

KFH also paid close attention to upskilling professionals by launching its Real Estate Appraisal Program, for individuals interested in the real estate sector. The program is a fruitful result of a collaboration with the Gulf University for Science and Technology (GUST). This is the first program of its kind in Kuwait tailored to cover the latest technical and professional trends in the real estate industry.

Group Treasury

The Group Treasury successfully navigated numerous significant internal and external challenges in 2024, particularly following the acquisition of Ahli United Bank Group. On the global front, the forecasted shift in global and local interest rates, driven by the declining inflation rate, increased the focus on the decisions of the U.S. Federal Reserve and the Central Bank of Kuwait. To reduce uncertainty and enhance our assets portfolio which exceeds $125 billion, we placed a Group-wide prudent precautionary strategy to maintain a consistent solid performance. We increased our financial derivatives portfolio, in terms of size and products. Additionally, unifying the financial transactions and activities, making them a central component at the Group level, strengthened our presence in the market and reinforced the standing of KFH as a leader in the Islamic banking.

Following the acquisition, the Group Treasury was assigned to improve the Group’s financing portfolio across all currencies. Leveraging KFH’s expertise in the market, the Group projected to achieve synergies in the cost of financing at the Group level and consolidate AUB’s entire portfolio within two years. This estimation was achieved in 8 months, exceeding the target by over 12%.

The Group Treasury continued its investments and market making activities in the Primary and Secondary Capital markets. While being one of the most active Sukuk market players, Group Treasury executed Sukuk transactions worth more than $13 billion during the year and increased its secondary market activities in the International Islamic Liquidity Management Corporation (the IILM)’s short term issuances. KFH Group Treasury maintained its top 3 position in the IILM Sukuk primary dealer list since the program’s inception and continues to be the first ranked IILM secondary market dealer for the 4th consecutive year amongst several international and regional banks, thus affirming KFH’s position as a core player in the short-term IILM Sukuk market.

The Group Treasury increased its network of capital market counterparties to further improve access to better pricing, diversification, competitive rates, and enhanced trade opportunities in the Sukuk market. The Group’s retail client activity amounted to $267 million in 2024. This increase is due to the growing retail demand as well as the expanded retail base resulting from the acquisition of AUB. As part of the Bank’s ESG initiative, the Group Treasury expanded its ESG Sukuk exposure to reach $653.2 million in 2024 compared to $249 million in 2023; an increase of 162.3%. These efforts reflect Group Treasury dedication to sustainable investment practices through its continued investments in ESG-compliant Sukuk.

Throughout the year, the Group Treasury achieved over $45 billion volume in FX transactions during the year and onboarded several new reputable corporate clients who has shown keen interest in FX Spot and Islamic derivatives hedging instruments and solutions. To further enhance the FX activities, the Group Treasury established a leading Market Maker for GCC currencies market with its global and local counterparts. KFH maintained its pioneering position in the Kuwaiti banking sector in all Shari’a-compliant treasury products and services.

Sukuk

The Group continued its leadership in issuing international Sukuk. KFH Capital, the investment arm of the Group, successfully led and arranged approximately $17.8 billion in Sukuk Issuance for sovereigns and corporates across various sectors and geographies in 2024. Furthermore, KFH Capital has emerged as a leader in Sukuk issuance, acting as a lead manager and bookrunner in the $1 billion Sukuk for Al Rajhi Bank. In addition, the Company successfully arranged Sukuk issuance for Dubai Islamic Bank worth $1 billion, and Sukuk issuance worth $800 million for First Abu Dhabi Bank (FAB). KFH Capital also played the role of a global coordinator for the issuance of $1 billion Sukuk for KFH.

KFH Capital demonstrated its leadership in the Sukuk industry, acting as a joint lead manager and bookrunner for two Sukuk issuances worth $3.5 billion for the Saudi Public Investment Fund (PIF). The Company also led and arranged the issuance of a $3 billion international Sukuk for the Saudi giant, Aramco. Additionally, Turkiye Wealth Fund (TWF), in its first international Islamic finance transaction, assigned KFH Capital to act as a joint bookrunner, allowing TWF to raise $750 million with competitive prices.

Investment Funds

In line with the Bank’s ambitious growth plans, KFH Capital successfully marketed two Ijarah funds, two real estate funds, and a USD money market fund. These funds are designed to provide Private Banking clients with targeted returns. The objective of these investment funds is to achieve attractive rates of return by investing primarily in Ijarah-based assets. Meanwhile, the $55.5 million real estate fund seeks to generate stable income through investments in a diversified portfolio of residential land in major urban areas within the United States. In addition, the company is marketing a GBP 77 million UK real estate fund whose portfolio consists of two student housing properties in London.

These initiatives signify the continued expansion of KFH Capital's international investment portfolio and reflect the company's growing presence in the real estate markets of North America and the United Kingdom. This growth stems from KFH Capital’s strong relationship with well-established real estate firms and asset managers, aiming to diversify the assets and provide long-term value for investors.

KFH Capital

The Asset Management Sector at KFH Capital remained committed to delivering innovative services and value-adding solutions to its clients, with a particular focus on enhancing trading services last year. This year, we are proud of the company’s comprehensive approach in assets management, which emphasizes strategic portfolio diversification, robust risk management, and a balanced approach to both. Our expert team works closely with clients to understand their financial goals, ensuring that our investment strategies are aligned with their aspirations and plans. We will continue to strive to strengthen our relationships with clients and achieve sustainable growth by providing innovative investment solutions and products.

The company maintained its prestigious position during 2024, winning distinguished global awards, including: Hybrid Deal of the Year Award from the Islamic Finance News (IFN), Kuwait`s Best Investment Bank from Global Finance, Islamic Finance Deal of the Year Award for its role in the Republic of Turkiye’s $2.5 billion Sukuk, and Best for Fixed Income in Kuwait from Euromoney.

In addition, 2024 marked a pivotal year for KFH Capital's digital transformation. The company’s Asset Management System (AMS) went through a breakthrough, acting as a centralized platform for funds and assets management and contributing significantly to the automation of the current processes. The company has also launched two impactful initiatives. First, an integrated investment management portal that connects with internal systems, empowering employees to complete tasks that previously necessitated physical intervention and client presence. Second, a dedicated mobile application (KFH Wealth App), was meticulously designed to provide customers with a holistic view of their investments and streamline the subscription process for any public funds offered by KFH Capital.

Corporate Banking

KFH continued its role in providing necessary financing for companies and major projects at the local and regional levels. This included a syndicated financing deal involving several GCC banks to fund KD 232 million to the Saudi Electricity Company.

KFH also participated in a syndicated financing deal of KD 63 million to Ras Laffan Petrochemical Company for development and operation of the Ras Laffan Petrochemical Project in Qatar. It also participated in a syndicated financing deal providing KD 79 million to Macquarie Aviation Finance in Ireland, as well as a tranche of KD 31 million within the KD 184 million syndicated financing to the Egyptian General Petroleum Corporation.

KFH also played a pivotal role in the local economy by financing large scale complex projects across various sectors. These included the financing of real estate projects worth KD 313 million.

KFH strengthened local infrastructure development by financing KD 85 million for the telecommunication industry. KFH also provided a finance of KD 31 million to strengthen the logistics services sector. KFH also played a pioneering role in financing the first fiber optic cable manufacturing company in Kuwait (Taihan Factory).

KFH acts as a strategic partner in the development of small, medium and micro-enterprises. This is reflected in the solid growth achieved in its financing portfolio pertaining to small and medium enterprises. Further, KFH improved its customer base. Many small and medium enterprises began their success story through this financing facility.

On the operational and customer service level, KFH continued investing in supporting systems to enhance customer experience. These efforts resulted in expanding online corporate banking through (eCorp) to include trade finance applications, Tawarruq drawdowns in addition to multiple mobile e-Banking services (eCorp). KFH’s achievements in the field of corporate service was appreciated and recognized by Euromoney Magazine, which designated the Bank as the Market Leader – Kuwait in the corporate banking category.

Group Operations

The year 2024 was a transformative year for KFH Group Operations teams. We have achieved a number of milestones at all levels. Our main areas of focus were ensuring operational excellence, boosting digital innovation and executing strategic initiatives that align with the Bank’s general business goals.

One of 2024 highlights was the successful acquisition and merger of the (formerly) Ahli United Bank – Kuwait. The operations team played a pivotal role in executing a seamless transition for such a complex task on Operational Day 1 (OD1). The team formed and ran the Central Command Center to supervise the operational aspects of the merger. Since Legal Day 1 and up to the first day of migrating customers and operations, all activities were managed with precision, leading to seamless integration and full continuation of business. Undoubtedly, the team’s ability to manage such transition without business interruption reflects its level of expertise and excellent planning skills.

We also made progress in terms of facilitating customer service and internal operations. One of the major initiatives was introducing new features on the Public Authority for Industry (PAI)’s portal. The new features allowed customers to manage new transactions and renew contracts more easily. These initiatives are an indicative of our ongoing commitment to enhancing customer experience through digital solutions.  Moreover, the new trade e-financing service made it easier to authenticate the trade financing transactions for customers, improving the service and internal efficiency. We also pioneered the shift to digital printing in our divisions. This further streamlined our core processes and enhanced our efforts to reduce manual work and turnaround times.

In terms of cards, we achieved significant progress in raising the efficiency of our operations and enhancing customer satisfaction. Another highlight in 2024 was the major shift in using the instant card printing devices (kiosks) located in a number of branches, minimizing customers’ visits to the designated central locations. This shift led to an annual saving of KD 24 thousand. This promoted customer experience significantly by offering a quicker service and instant issuance of cards when necessary. Besides, this advancement in service allowed customers to manage their payments more effectively and reduced collection process turnaround. 

Despite the extensive participation in the procurement activities during the transitional merger phase with the (formerly) AUBK, we succeeded in achieving remarkable progress by improving the procurement strategies and issuing more efficient inventory reports. The team also achieved substantial synergies in costs, a decrease of KD 53,247. This reflects our core focus on maximizing value and improving operational expenses in general.

On top of that, the Group Operations team played a critical role in pushing the operational excellence forward by focusing on automating and improving processes. In this regard, the team implemented various successful initiatives to previous manual tasks with the aim of accelerating them and cutting their costs. Major operations such as migrating the operations files and clearing the Ministry of Justice’s emails are now being fully automated.

In general, 2024 was a year marked by advancement, innovation and achievements for the Group Operations. These accomplishments were characterized by strategic priorities such as process automation, digital transformation, cost management, operational capacity enhancement and customer experience improvement. Without doubt, these milestones motivate us for continued growth and success in the coming years. As we move forward, we will stay committed to operational excellence and offering value to our customers and stakeholders.

Information Technology

KFH continued its innovative streak, developing digital financial solutions tailored to the needs and aspirations of its customers. In this regard, the IT sector at KFH implemented numerous projects across banking and financing services, products, and practices along with enhancing the technological infrastructure, bolstering cybersecurity defenses, and promoting AI technology adoption.

KFH IT team successfully completed the merger activities with (formerly) Ahli United Bank, ensuring a smooth and successful transition with regards to systems operations and reports, including the Central Bank of Kuwait (CBK)’s reports. The team successfully integrated the accounts and products of over 280,000 (formerly) AUBK customers and unified more than 80 systems as well as services and products across all bank departments.

With the efforts of the IT sector, KFH spearheaded the introduction of numerous digital services in Kuwait, notably:  

• Instant payment service to another account (WAMD), this covers balance transfer, refund, managing username and payment request.
• The integration of the corporate system (eCorp) with the Public Authority for Civil Information (PACI), facilitating KFH’s system to register companies and adding new corporate users seamlessly.  Currently, the integration with PACI ensures essential verification processes, guaranteeing that customer profiles remain consistently up to date.
• Enabling face ID authentication for eCorp users, enabling seamless and secure access to the eCorp mobile application. 
• Conducting several system recovery simulation exercises on different systems according to the crisis recovery plans.
• Integrating T360 system with eCorp system, allowing customer to have a live market rate, minimizing physical communication with the account agent and ensuring quick transactions.
• The introduction of the final digital solutions of the CreditLense program in which Moody’s company consolidated all the digital solutions, making them accessible on CreditLense platform tailored for KFH. The array of digital solutions includes virtual ESG form, new virtual form for the High-Net-Worth Individuals (HNWIs) category, new virtual form for projects category, updating customer’s date-entry fields, updating external rating maps and Early Warning Signs (EWS) reports. The components of the solutions package are now active for use by the business and risk teams, except for ESG form for evaluating KFH customers, awaiting instructions from the CBK.

Banking services

On 8 August 2024, KFH launched Al-Hassad Account as part of its ceaseless endeavors to offer distinguished products that cater to the aspirations of customers, reinforcing its standing locally and globally and highlighting its excellence in offering products and services according to the highest quality standards. Al-Hassad offers customers, wanting to save, weekly, monthly, and quarterly draws, with a total of more than 400 prizes throughout the year. Customers can open Al-Hassad account in the Kuwaiti Dinar currency through KFH branches or the available e-channels. A minimum balance of KD 100 or more is required to be eligible for the draw. The draw offers KD 1000 weekly, for 10 winners, KD 100,000 monthly for one winner in addition to KD 250,000 quarterly for one winner.

To promote customer loyalty, we extended the campaign launched for new customers, offering cash gifts up to KD 400 upon their salary transfer. We also launched the new Baitak Concierge service for AlTamayouz customers, in addition to launching summer and back to school campaigns and special offers.

Moreover, KFH successfully completed its expertise exchange initiative with KFH-Turkiye for the third consecutive year, leading to enhanced customer relationships and increased their satisfaction. 13 employees were deployed to Turkiye for two months during the summer to assist customers and visitors of KFH-Turkiye across 13 different branches spread in 7 cities. Meanwhile, KFH-Turkiye service center continued to support customers throughout the year, allowing them to conduct selected banking transactions with KFH-Turkiye without needing to travel. Over 12 thousand customers benefited from the services of the center.

To remain closer to our customers, we have opened new branches in Jabriya, Rumaithiya and Jaber Al-Ahmad, in addition to KFH’s first digital branch in the Avenues, solidifying its position at the forefront of technology adoption and customer satisfaction.

Cards

During the completion of the merger process, we succeeded in issuing and acquiring cards without significant customer issues. We also launched a new rewards-structured campaign for Visa Signature and Infinite credit cards, which helped in accelerating card sales and spending. Additionally, various campaigns were executed throughout the year to drive customer engagement in collaboration with VISA/Mastercard, as well as local and international popular brands to enhance their loyalty. The campaigns increased the cards active usage rate significantly compared to last year.

Moreover, KFH launched many Baitak Rewards campaigns such as new salary transfer bonus points, redeeming points for Winter Wonderland free tickets and wallet recharge etc. Also, new features were introduced such as buy points. The campaigns and new features have helped to increase Baitak Rewards app rating in app stores and improve customer experience.

In addition to the foregoing, we successfully executed two mega campaigns to increase spending and raise customers interaction. In collaboration with Mastercard, we launched “With KFH Mastercard You Choose the Car” campaign for Mastercard holders, granting eight winners the opportunity to win a car of their choice. As for Visa cardholders, we launched the “Your Train is Waiting’ campaign, granting twelve winners the opportunity to embark on a luxurious seven-star trip aboard the Belmond Train.

In recognition of these efforts, Mastercard awarded KFH two awards: the Highest Penetration of Tokenized Transactions in Kuwait in 2024 award and the Highest Volume Growth in Mastercard World Portfolio award.

Tam Bank

Ttam is proud to be Kuwait’s only fully Shari’a-compliant digital bank, offering a unique and modern banking experience tailored to the customers’ needs. Tam goes beyond traditional banking by incorporating social-media-like features, helping customers feel more connected and engaged. Tam’s rewards system allows customers to earn points both for transactions and engagement, creating a complete reward experience that keeps users coming back. The rewards program also offers a full 100% cashback benefit, making Tam a top choice for value-seeking customers.

Tam’s success has been recognized by several industry-leading awards, highlighting its commitment to innovation and customer experience, the most prominent of which are Transformation Award-MEA, Best Visual Identity in Financial Services (Gold winner), Best New Brand Development (Silver winner), Best Naming Strategy (Silver Winner), Best Use of Technology in a Program (Incentive Awards 2024), and Euromoney’s Best Digital Bank in Kuwait award.

 Innovative products

To strengthen our extensive banking expertise and reaffirm our commitment to providing the best banking experience in the Kuwaiti market, and building on our banking service excellence, KFH sought to offer a wide range of banking products, services, and solutions tailored to meet the evolving needs of retail and corporate customers, ensuring maximum convenience and security.

KFH introduced an array of banking services through KFHOnline. These include the following:

Transfers via Western Union, e-mail update, Civil ID update through Kuwait Mobile ID application, enhancing cards and funds transfer services, customer push-notifications service, transfer service through AFAQ network, WAMD service for instant money transfer and KFH Pay service. These services are supported by the largest and most widespread ATM network in Kuwait, comprising over 500 machines.

Outstanding solutions

KFH rolled out numerous innovative banking services and products confirming the unprecedented success in its digital transformation strategy. KFH continued its excellence in delivering innovation in the financial and funding aspects tailored to meet the needs and aspirations of our customers. Retail Banking and IT sector launched a number of pioneering services for the first time in Kuwait. The prominent services include the first-of-its-kind instant credit and prepaid card printing service, expanding the services offered through D-POS device that enabled direct account opening at all KFH branches and through direct sales employees.

Shari’a Control

During 2024, KFH's Shari’a Control continued fulfilling its responsibilities covering all areas, projects, and plans. This included the notable endeavor of acquiring and merging with Ahli United Bank. KFH’s Internal Shari’a Audit Department conducted meticulous audits of the Bank’s sectors and departments, as per the 2024 approved plan. This included inspections of AUB’s processes and systems until the operational integration as per the approved plan from the Fatwa and Shari’a Supervisory Board and Audit and Compliance Committee. Additionally, the Shari’a Research and Advisory Department conducted Shari’a revision on contracts, products, agreements, and policies submitted by KFH sectors and departments, addressed Shari’a-related queries and concerns, and submitted them, whenever required, to the Fatwa and Shari’a Supervisory Board to obtain their opinion.

In terms of spreading awareness and Shari’a culture among customers and employees, the department answered Shari’a related inquiries received from customers via phone. It also published economic jurisprudential bulletins circulating them to employees through the e-channels available at KFH. The department also contributed to developing KFH’s products and services, providing professional support and advice to the top executive management, facilitating the day-today tasks in the different departments according to the Islamic Shari’a principles, in addition to supporting the Shari’a supervisory board in fulfilling its duties. Moreover, the Shari’a Control sector assists in social awareness initiatives, highlighting KFH’s role in Islamic banking.

Legal

The Group’s Legal Department diligently worked to protect the material and moral rights of the Group. This included enforcing court orders in the Group’s favor and ensuring full compliance with all relevant laws and regulations. Additionally, the Department fulfilled its role in the completion of the KFH-AUBK merger.

Risks

Risk Management successfully achieved significant progress in digital transformation, relying on the latest AI techniques, machine learning, and advanced analytics to enhance the capabilities of risk assessment, monitoring, and early forecasting. This strategic approach enabled us to adopt advanced tools to support managing financial risks according to the best global practices. Our aim through this step is to build effective abilities that can evolve, face unexpected challenges, and contribute to the Group’s stability and growth in a sustainable manner. We also look forward to continuing the application of innovative strategies that promote the Group’s resilience and ability to face risks with high efficiency.

Amidst the uncertainty resulting from the dynamic economic changes, such as the increased inflation and interest rates, currency fluctuations, and the subsequent changes in monetary policies at the global, regional and local levels, the Risk Management Department continued its efforts in monitoring the credit risks and working proactively to supervise the mitigation of such risks and assisting KFH Group in protecting its assets and grasping the opportunities under such circumstances. The department’s approach made KFH at the forefront of the Kuwaiti and GCC banks in terms of net costs of risks which positively enhanced the Group’s profitability.

 The Risk department successfully expanded the implementation of its comprehensive governance framework to include the recently joined subsidiary banks. This was achieved through integrating risk systems and frameworks and adopting globally recognized best practices. This strategy facilitated the continuation of the seamless integration initiatives at the group level. As a result, the group underwent strategic reviews by leading international credit rating agencies, such as Moody’s and Fitch, which highlighted the robustness of its risk management frameworks and their positive impact on the Group’s asset quality.

Furthermore, the Group Risk Management continued implementing its Capital Management Program throughout the year, ensuring sustainable development by diversifying risk-weighted assets as an internal capital support. In addition, external support was utilized when necessary, according to the Group’s strategy and plans. By the end of the year, the Group’s capital adequacy ratio reached 18.18%, exceeding regulatory requirements.

Amid the escalating geopolitical risks in the regionally and globally, the significance of business continuity risk management has become increasingly evident as a tool in preparing different scenarios as a response to these changes. The Risk department also succeeded in planning, implementing and simulating various scenarios to ensure business continuity under emergencies. Additionally, the proactive adoption of contingency measures also enhanced the Group’s ability to sustain business operations in a volatile geopolitical environment. Furthermore, the risk appetite framework for the Group and subsidiaries was comprehensively updated to align with the evolving economic and financial conditions, ensuring alignment with the Group’s risk strategy and its overall strategy.

 Social role and sustainability

On the social responsibility front, KFH succeeded in implementing 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 initiatives.

As part of its keenness on supporting education students and the youth due to its positive impact on the community, KFH signed a collaboration and partnership agreement with the Kuwait Technical College (K-Tech). KFH is committed to support the private and public academic institutions in fulfilling their role of preparing young national talents and improving their capabilities. The Bank also renewed its strategic partnership with the Scientific Center, a subsidiary of Kuwait Foundation for the Advancement of Sciences (KFAS), with the aim of collaborating in the field of environmental preservation and sustainability. KFH signed a Memorandum of Understanding (MoU) with Sabah Al-Ahmad Center for Giftedness and Creativity (SACGC), a center affiliated to Kuwait Foundation for the Advancement of Sciences (KFAS). The center is dedicated to facilitating the integration of creativity, technology and innovation in the community. This MoU is the first of its kind, demonstrating KFH’s vision to support social development through innovation and creativity.

For the second consecutive year, KFH extended its strategic partnership for the largest cybersecurity hackathon in Kuwait (Kuwait Hackathon). The Bank participated in NEXUS 2024 – Kuwait, a premier platform that supports innovation and entrepreneurship in Kuwait. KFH also renewed its partnership with CODED Academy as part of supporting innovation.

Moreover, KFH successfully launched the inaugural edition of the KFH PR Academy. The first-of-its-kind program equipped university students and recent graduates with the fundamentals and tasks of public relations and media in general, and ways of implementing such fundamentals within KFH in particular. KFH also renewed its strategic partnership with the Touristic Enterprises Company to support the Winter Wonderland project.

KFH continued its support to Diraya campaign by disseminating purposeful publications and media contents aiming to promote financial literacy. To achieve this, the Bank utilized its social medial channels to serve customers and the public through launching awareness campaigns and educational materials. In this regard, KFH won the excellence – level one for its active role in Diraya campaign.

Reflecting its keenness towards supporting people with special needs, KFH completed the internship program with the Public Authority for Manpower (PAM). The program is part of KFH’s ongoing commitment to supporting initiatives that promote the development of national talent and enhance the capabilities of Kuwaiti youth. The Bank also concluded the fourth edition of its training program for students with special needs.

The Bank succeeded in executing its immersive Ramadan program "Increase Good Deeds in Ramadan", during which 12 thousand iftar meals were distributed. KFH partnered with the Kuwait Food Bank in a collaborative agreement, pledging KD 1 million to support underprivileged families in Kuwait, reinforcing KFH's commitment to social and humanitarian responsibility.

KFH also signed the contract for the implementation of 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 the project is around KD 8 million. This support from KFH reaffirmed the bank's commitment to its leading social role by actively contributing to various areas to better serve the community by working collaboratively with official entities.

Moreover, KFH signed the first-of-its-kind Global Takaful Alliance agreement with the United Nations Development Programme (UNDP). The two parties also discussed establishing a strategic partnership to finance sustainable development projects in Kuwait, the region, and around the world. They also agreed in principle to create a sustainable financing platform, the Green Finance Facility. This initiative aims to connect Islamic finance with sustainable development projects across the Arab region, Africa, and beyond. KFH participated in the sixteenth session of the Conference of the Parties (COP16) to the United Nations Convention to Combat Desertification (UNCCD), held in Riyadh. It also released the first-of-its-kind Carbon Footprint report in Kuwait’s banking sector and launched Keep it green campaign, the umbrella of many environmental and sustainable initiatives. Moreover, it introduced the Environmental Sustainability award to recognize the best student engineering projects that focus on the environment and sustainability. The Bank also organized various awareness campaigns to school and university students. KFH cooperated with the Green Dream Team in the greening of chalets on Al Zour Road. It also provided societal and environmental support for Sheikh Sabah Al-Ahmad Natural Reserve, aiming to safeguard its wildlife.

KFH organized the Mishkat Al-Nubuwwa Hadith Memorization Competition, the largest of its kind in Kuwait. Additionally, KFH launched the 11th annual Holy Quran recitation competition, Qurra’a Baitek.

In recognition of its exceptional efforts in social responsibility, KFH was awarded with the Corporate Social Responsibility – Middle East award from EMEA Finance Magazine.

KFH is committed to having a solid and effective governance framework. It is the first bank to have formed a committee as part of the Board of Directors specifically for governance and sustainability. KFH is also the first bank to have designed an integrated sustainability strategy covering the four pillars of economy, environment, society, and governance, aligning them with sustainable development goals (SDGs). In addition, KFH is the first bank to have established a department assigned to monitoring sustainability; promoting green finance products and managing talents.

KFH was awarded an "A" rating by MSCI ESG Index ratings, for its exemplary performance in environmental, social, and governance (ESG) practices. This prestigious rating underscored KFH's commitment to sustainable finance and its leadership in integrating ESG principles into its operations and strategic initiatives.

In addition, KFH was included in the FTSE4Good Index Series. Created by the global index and data provider FTSE Russell, the FTSE4Good Index Series is designed to measure the performance of companies demonstrating strong Environmental, Social and Governance (ESG) practices.

47 Prestigious Awards

With 43 awards and four rankings, KFH-Kuwait and the Group earned wide-spread acclaim for their outstanding advanced banking innovation, services, and products. These awards also solidify KFH’s pioneering position in digital transformation, Islamic finance industry, social responsibility and robust financial performance. Of the most prominent of these accolades which KFH received during 2024 are: World’s Best Islamic Financial Institution 2024 Award from Global Finance, Best Islamic Bank - Middle East, Best Bank – Kuwait, Best Islamic Bank – Kuwait, Best Product Launch (Zaheb) - Middle East, and Corporate Social Responsibility – Middle East from EMEA Finance Magazine. KFH also won Best Islamic Bank in Kuwait, and Best Islamic Bank in Turkiye awards from Islamic Finance News Group (IFN). KFH also scooped Kuwait's Best Bank, Kuwait's Best Bank for ESG, Kuwait's Best Digital Bank – Tam digital bank, and Kuwait’s Best Islamic Bank awards from Euromoney. In addition, EMEA Finance Group awarded KFH with the Best Islamic Finance House, and Best Financial Institution Sukuk awards.  Additionally, KFH was recognized with Kuwait's Best Bank for Sustainable Finance award by Global Finance Magazine. The magazine honored KFH Group with four additional awards. The awards are: Best Islamic Corporate Bank – Global, Best Islamic Project Finance Provider – Global, and Best Islamic Financial Institution in Turkiye. Additionally, AUB, a subsidiary of KFH Group, was awarded Bahrain's Best Bank, in addition to Best SME Bank in Kuwait awards. KFH also achieved a remarkable feat, ranking as the leading Kuwaiti company on the Forbes 2024 Top 100 Listed Companies list.

At the GCC region level, KFH received an honor from the Council of Ministers of Labor and Social Affairs in GCC States for its distinction and excellence in the execution of the Manpower Nationalization and qualification programs at the private sector level in Kuwait. As for the local level, KFH won the 23rd edition of His Highness Sheikh Salem Al-Ali Al-Sabah Informatics Award for the category of excellence in digital transformation in technical financial solutions. 

Thanks and Appreciation

I would like to extend my appreciation to our customers, partners and shareholders for their commitment and enduring loyalty. I must also thank our employees, the cornerstone of our success, across all areas of our operation. With your support, we shall continue delivering sustainable returns for the shareholders and contribute positively to all the communities and regions where we operate.

Finally, I would like to express my sincere gratitude and appreciation to His Highness the Amir of Kuwait Sheikh Mishal Al-Ahmad Al-Jaber Al-Sabah, may Allah safeguard him, His Highness the Crown Prince, Sheikh Sabah Al-Khaled Al-Sabah, and His Highness the Prime Minister, Sheikh Ahmad Al-Abdullah Al-Sabah. Our thanks and appreciation are also extended to the Central Bank of Kuwait and all the regulatory authorities for their constant support to the banking sector in the State of Kuwait.”