Kuwait’s KFH and NBK Pass 1 Billion Dinars of Nine-Month Profit, Up 4.7 Percent
Kuwait Finance House and National Bank of Kuwait earned a combined 1,005.0 million dinars for their shareholders in the first nine months of 2026, up 4.7 percent from 960.0 million a year earlier, on our calculation from the interim statements both groups released on 19 October. KFH’s net profit attributable to shareholders rose 6.2 percent to 523.4 million dinars and NBK’s rose 3.1 percent to 481.7 million. Boubyan Bank, NBK’s Islamic banking arm, lifted its profit 3.9 percent to 80.7 million.
KFH widens its lead as both groups grow
Nine-month profit attributable to shareholders
| Bank | 9M 2026, KD million | 9M 2025, KD million | Change |
|---|---|---|---|
| Kuwait Finance House | 523.4 | 492.7 | +6.2% |
| National Bank of Kuwait | 481.7 | 467.4 | +3.1% |
| Boubyan Bank | 80.7 | 77.7 | +3.9% |
| KFH and NBK combined | 1,005.0 | 960.0 | +4.7% |
From each bank’s interim financial statements for the period ended 30 September 2026; changes are our calculation from the statements’ thousands. Boubyan is NBK’s Islamic banking arm and contributes to NBK’s revenue and profit, so the combined line adds KFH and NBK only.
KFH accounted for 52.1 percent of the two groups’ combined profit and for 68.2 percent of the 45.0 million dinar increase, on our calculation. Its earnings per share rose 5.4 percent to 27.56 fils. NBK’s earnings per share were 49 fils, the same as a year earlier, while Boubyan’s rose to 15.82 fils from 15.18 fils.
KFH’s growth came from both sides of the income statement. Total operating income rose 6.7 percent to 1,452.2 million dinars, with net fees and commissions up 20.6 percent to 200.2 million, on our calculation. Operating expenses fell 3.0 percent to 447.5 million. That brought the cost to income ratio down to 30.8 percent from 33.9 percent. KFH’s own release headed the result “The Highest in the Banking Sector”.
At NBK, non-interest income did most of the work. It rose 14.2 percent to 251.4 million dinars and made up 25.0 percent of net operating income of 1,005.7 million, against 22.7 percent a year earlier, on our calculation. Net interest income and net income from Islamic financing together rose 0.7 percent to 754.3 million.
Third quarter profit rose at all three
Third quarter profit attributable to shareholders
| Bank | Q3 2026, KD million | Q3 2025, KD million | Change |
|---|---|---|---|
| Kuwait Finance House | 160.3 | 150.5 | +6.5% |
| National Bank of Kuwait | 156.9 | 152.1 | +3.1% |
| Boubyan Bank | 26.0 | 25.4 | +2.4% |
Three months to 30 September, from the banks’ statements; changes are our calculation.
KFH’s profit for July to September rose 6.5 percent, faster than the 6.1 percent growth the bank reported for the first half on 22 July. KFH also out-earned NBK in the quarter, by 3.4 million dinars.
NBK’s quarter tracked its year. It earned 156.9 million dinars, up 3.1 percent, after first-half growth of 3 percent to 324.8 million. Its second quarter, at 189.3 million, remains the group’s largest of 2026.
Boubyan earned 26.0 million dinars in the quarter, up 2.4 percent. Its operating profit before provisions rose faster, by 12.3 percent to 37.5 million, on our calculation.
Deposits outpaced financing at KFH and NBK
Financing and deposits at 30 September 2026
| Bank | Financing, KD billion | Deposits, KD billion | Financing to deposits |
|---|---|---|---|
| National Bank of Kuwait | 28.2 | 27.9 | 101.1% |
| Kuwait Finance House | 23.4 | 22.7 | 103.4% |
| Boubyan Bank | 8.4 | 8.6 | 96.8% |
Financing is loans, advances and Islamic financing to customers at NBK, financing receivables at KFH and Islamic financing to customers at Boubyan; deposits are customer deposits at NBK and depositors’ accounts at KFH and Boubyan. Ratios are our calculation from the statements’ thousands.
Over the year to 30 September, KFH’s depositors’ accounts rose 12.7 percent while its financing receivables rose 10.5 percent, on our calculation. At NBK, customer deposits rose 13.5 percent and loans 8.2 percent. The two groups’ combined financing to deposit ratio eased to 102.1 percent from 105.7 percent a year earlier. Boubyan went the other way, with financing up 10.1 percent and depositors’ accounts up 7.0 percent.
Credit facilities to residents at Kuwait’s local banks reached 49,751.3 million dinars at the end of August, up 5.2 percent on a year earlier, on our calculation from the Central Bank of Kuwait’s monthly statistics. The combined financing books of KFH and NBK grew 9.2 percent over the year to September, on our calculation. The two measures differ: the official series covers local banks’ local activity only and runs to August, while the group figures are consolidated and run to September.
Total assets reached 46.9 billion dinars at NBK and 43.8 billion at KFH, up 4.5 percent and 7.5 percent on the year, on our calculation. Boubyan’s assets rose 7.9 percent to 11.0 billion.
Operating profit before provisions rose at all three
Nine-month operating profit before provisions
| Bank | 9M 2026, KD million | 9M 2025, KD million | Change |
|---|---|---|---|
| Kuwait Finance House | 1,004.7 | 899.1 | +11.7% |
| National Bank of Kuwait | 625.5 | 604.4 | +3.5% |
| Boubyan Bank | 110.1 | 100.7 | +9.3% |
KFH’s line is net operating income before provisions and impairment and net monetary loss; NBK’s is operating profit before provision; Boubyan’s is operating profit before provision for impairment. Changes are our calculation.
Before provisions, KFH and NBK together earned 1,630.2 million dinars, up 8.4 percent, against 4.7 percent for their net profit. Provision charges at the two groups rose 63.8 percent to 159.8 million dinars, on our calculation, an increase of 62.3 million that was larger than the 45.0 million rise in combined net profit. KFH’s provisions and impairment rose to 135.9 million from 85.7 million, NBK’s to 24.0 million from 11.9 million, and Boubyan’s to 16.0 million from 10.9 million. KFH’s net monetary loss, by contrast, fell 15.7 percent to 86.9 million dinars.
Capital at both groups was above regulatory requirements. KFH’s capital adequacy ratio was 17.22 percent, against 17.47 percent at the end of June. NBK’s ratio was 15.9 percent, with nonperforming loans at 1.29 percent and coverage of 236 percent, per KUNA; a year earlier NBK reported 16.4 percent, 1.37 percent and 241 percent. The agency also carried remarks by Boubyan’s chairman that the bank’s 90 million dinar mudaraba sukuk, its first private sukuk issue in local currency within additional Tier 1 capital, supports the efficiency of its capital structure. Boubyan’s September balance sheet carries 90.0 million dinars of perpetual Tier 1 sukuk.
Why it matters: KFH and NBK earned 1,005.0 million dinars between them in nine months, and both grew deposits faster than financing over the year. Operating profit before provisions rose faster than net profit at each group, with KFH lowering its operating expenses and NBK lifting its non-interest income. KFH’s chairman, Hamad Abdulmohsen Al-Marzouq, said supportive laws and regulations, among them the Real Estate Financing Law and the Sukuk Law, are helping the private sector and financial institutions grow. NBK said in KUNA’s report that implementing the Real Estate Financing Decree-Law would support banking sector growth.
Outlook: Boubyan’s analyst conference call is set for 22 October, according to its Boursa Kuwait disclosure. The September edition of the monetary statistics will show whether growth in credit facilities to residents builds on August’s 5.2 percent. With operating profit before provisions up 8.4 percent at KFH and NBK, any slowdown in provisioning in the fourth quarter would pass more directly into net profit.
Sources: Kuwait Finance House, National Bank of Kuwait, Boubyan Bank, Boursa Kuwait, Central Bank of Kuwait, KUNA, The Edge.
