Kuwait Finance House’s 45th year in business was a banner one. In October 2022, the team led by acting chief executive Abdulwahab Iesa Alrushood completed the acquisition of Bahrain’s Ahli United Bank to create the world’s second-largest Islamic bank.
The $11.6 billion deal was four years in the making and was among the world’s biggest bank mergers announced last year. It also was a rare cross-border transaction in the Middle East, creating the Gulf region’s seventh-largest lender by assets.
Along with optimizing costs in an increasingly competitive industry, the combined bank boosts KFH’s geographic diversification and increases its opportunities to participate in state projects.
With 524 branches, 1,812 ATMs and state-of-the-art mobile app services across the Gulf Cooperation Council (GCC), Asia and Europe, KFH’s regional footprint is already well established. Adding Ahli United Bank reinforces this leadership position.
The financial results speak for themselves. In the 12 months ended September 2022, net financing income rose 14.8%, net operating income increased 27.2% and total assets increased 4%.
KFH officials are quick to highlight the institution’s many firsts. It was first to receive a licence to operate an Islamic bank in Germany. It was also the first in the industry to cover a broad mix of international markets including the GCC, Turkey, Malaysia and the West.
The bank was the first in Kuwait to offer an e-signature service for personal finance. KFH also introduced the first financial market-level online account opening service.
Kuwait’s first banking robot was a KFH launch. It incorporates artificial intelligence to complete transactions in consumer and instalment financing. The tool is cutting processing times to 20 minutes from 60 minutes.
KFH’s mobile wallet payment service has ranked well in customer surveys, as has its one-stop-shop car showrooms and ATM sales of gold bars.
In the 12 months ended September 2022, net financing income rose 14.8%, net operating income increased 27.2% and total assets increased 4%
Digitalization is a particular focus. The bank has led the sector in offering a mobile cheque deposit service in Kuwait in collaboration with Progress Soft, a global IT provider. With just a screenshot of the original cheque, users can make deposits immediately using KFH Online.
Sustainability is another bank priority. In January 2023, it deepened its green partnership with the United Nations Development Programme to develop clearer sustainable development goals standards for Shariah-compliant finance, particularly green sukuk issuance.
KFH has adopted a pioneering sustainability strategy – its Keep it Green programme – as an umbrella for several sustainability initiatives. This earned the bank a gold-level certificate from the Global Sustainability Assessment System, a first in Kuwait.
KFH officials say the technical partnership with UNDP is accelerating efforts to embed sustainability and the UN Sustainable Development Goals across its investment portfolios, to expand impact investment offerings and to grow the green sukuk market.
