Kuwait Listed Banks’ Results — H1’26

Welcome to the Kuwait listed banks’ results for H1’26. This is our half-yearly analysis of Kuwait’s nine listed commercial banks’ financial performance to project the outlook of the country’s banking sector.

This report is a continuation of our Kuwait Listed Banks’ Results H1-2025 report that was published last year and forms a series of reports KPMG Kuwait has published around the banking sector of Kuwait.

To analyse the reviewed available financial information of Kuwait’s nine listed banks and understand their performance comparatively, we apply a sharp lens to eight key performance indicators (KPIs). These are: (1) total assets; (2) net profit; (3) share price; (4) return on equity; (5) return on assets; (6) cost-to-income ratio; (7) loan by stage; and (8) non-performing loan ratio.

Kuwait’s economy continues to rely heavily on the oil sector, which accounts for roughly 90% of government revenue — even as Kuwait Vision 2035 drives efforts toward diversification into non-oil sectors such as trade, logistics, education, and construction.

This period also saw strategic and regulatory developments across the sector. Warba Bank finalized the Purchase Price Allocation relating to its investment in Gulf Bank, while the proposed merger between Warba and Gulf Bank continued to progress. Gulf Bank also advanced its planned conversion to an Islamic bank, completing the regulatory and operational requirements under the Central Bank of Kuwait’s (CBK) initial approval and seeking further approval to proceed with the conversion3. At the sector level, the CBK also introduced regulatory measures aimed at supporting banking-sector resilience amid the evolving geopolitical environment4. Beyond this, developments in capital markets and housing finance, rapid advances in technology and artificial intelligence, cybersecurity, innovation, and sustainable finance continue to shape Kuwait’s banking sector and its role in supporting economic development and ambitions under Kuwait’s Vision 2035.

We believe that rather than anchoring to a single fixed outlook, the sector is better served by staying responsive as conditions change. Looking ahead to the remainder of 2026, the sector’s ability to innovate and embrace technological change while maintaining operational resilience will remain important as geopolitical and economic conditions continue to evolve. Our next quarterly results will track their progress.

I hope you enjoy the facts and findings in this report, that they refresh your view of Kuwait’s banking industry, and that they prompt the strategic rethink the sector needs.

We look forward to your thoughts.

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