KFH Achieves New Heights with Successful Merger of Ahli United Bank

Kuwait Finance House (KFH) has once again demonstrated its prowess in the Islamic banking sector by completing a monumental merger that has reshaped the financial landscape in Kuwait and across the region. As part of KFH’s achievements, under the leadership of Chairman Hamad Abdulmohsen Al Marzouq, KFH completed the merger with Ahli United Bank (AUB), marking a significant milestone in the bank’s history.

This merger was one of the largest in the region and a key step in solidifying KFH’s position as a global leader in Sharia-compliant banking. The successful integration of both banks’ operations, completed in record time, signals a new chapter in KFH’s achievements, setting the stage for continued growth, operational excellence, and leadership in the global Islamic finance industry.

A Historic Merger and KFH’s Success Achievements

The merger between KFH and AUB is a landmark event in Kuwait’s banking sector. It is the largest-ever merger in the country’s history, combining two powerful financial entities to form a colossal institution with extensive reach. The merger was completed swiftly and efficiently, demonstrating KFH’s operational capabilities and its ability to execute large-scale, complex transactions. This new financial giant now can cater to a broader customer base, both locally and globally, and is poised to drive further growth in the Islamic finance industry.

KFH’s acquisition of AUB is significant not only because of its size but also because of its strategic importance. The integration of AUB’s operations with KFH’s existing systems has enabled the bank to expand its footprint beyond Kuwait, with a presence now in Bahrain, Egypt, the United Kingdom, and other key markets. This geographic expansion positions KFH to tap into new markets and offer its wide range of Sharia-compliant financial services to a more diverse clientele. The merger also strengthens KFH’s standing in the global banking arena, giving it the scale needed to compete with other major financial institutions around the world.

Operational Excellence

One of the standout features of this merger is the speed and efficiency with which the integration was completed. According to Chairman Al Marzouq, the operational integration of the two banks was finalized in record time, showcasing KFH’s ability to handle complex mergers without disrupting its day-to-day operations. This level of efficiency has set a new benchmark for banks in Kuwait and across the region.

Al Marzouq emphasized that the success of this strategic move is largely due to the hard work and dedication of everyone involved in the project. As part of KFH’s Success Achievements, the smooth transition has been particularly beneficial for KFH’s customers, employees, and shareholders. Customers now have access to a wider array of Sharia-compliant financial products and services, ranging from personal and corporate banking to wealth management solutions. Employees, on the other hand, benefit from enhanced opportunities for professional growth within a larger, more diversified financial institution.

For shareholders, the merger represents a significant boost in profitability. With its expanded reach and enhanced operational capabilities, KFH is now better positioned to generate higher revenues and improve its financial performance. This is reflected in the bank’s financial results for 2023, which saw a record net profit of KD 584.5 million, a 63.4% increase compared to the previous year. This marked the highest profit ever recorded in the Kuwaiti banking sector, underscoring KFH’s ability to deliver value to its stakeholders.

Strengthening KFH’s Global Footprint

The successful integration of AUB into KFH’s operations is a game-changer for the bank’s international expansion strategy. With a global footprint that now spans 12 countries, including Kuwait, Bahrain, Türkiye, Egypt, the UK, and Germany, KFH is well-positioned to lead the future of Islamic finance on a global scale. The bank’s global reach is one of its key strengths, allowing it to offer its Sharia-compliant financial products and services to a diverse range of markets and customers.

Al Marzouq has made it clear that KFH’s ambition is to be included among the world’s 100 largest banks within the next decade. This goal is not far-fetched given the bank’s recent performance and its strategic expansion into new markets. By leveraging its experience, resources, and expertise in Islamic finance, KFH is well on its way to achieving this ambitious target.

A Commitment to Sharia Compliance

One of the key factors that sets KFH apart from other financial institutions is its unwavering commitment to Sharia compliance. The bank has a long history of providing Islamic banking services, and this commitment was a driving force behind the successful conversion of AUB’s conventional operations into Sharia-compliant entities. In record time, KFH was able to convert AUB’s operations in Bahrain, the UK, and Egypt to fully Sharia-compliant services, aligning them with KFH’s vision of expanding the Islamic finance industry both regionally and globally.

This conversion is a significant milestone for the Islamic banking industry, particularly in Europe, where demand for Sharia-compliant financial products and services is growing. By expanding its Sharia-compliant operations into new markets, KFH is tapping into a lucrative and rapidly expanding segment of the global banking industry. The bank’s expertise in Islamic finance gives it a competitive edge in these markets, allowing it to offer products and services that cater to the unique needs of its customers.

Leadership and Team Dedication

The success of this merger and the integration of AUB’s operations can be attributed to the dedication and hard work of KFH’s leadership team and employees. As part of KFH’s Success Achievements, Acting Group Chief Executive Officer, Abdulwahab Iesa Al Rushood, expressed his pride in the bank’s ability to complete such a massive project in a short period. According to Al Rushood, the integration involved more than 250 phases and over 2,000 individual tasks, all of which were completed without major disruptions to the bank’s operations.

A massive cross-functional team worked tirelessly to ensure the successful migration of accounts and products for more than 280,000 former AUB customers. In addition, more than 80 systems were integrated across all bank departments, unifying services and products under the KFH brand. Al Rushood noted that despite the challenges faced during the integration process, the team’s dedication and resilience were key to overcoming obstacles and ensuring a smooth transition.

The Future of KFH

As KFH looks to the future, the bank is focused on continuing its trajectory of growth and expansion. The successful completion of the AUB merger is just the beginning of a new phase for the bank. With its expanded footprint, enhanced operational capabilities, and commitment to Sharia compliance, KFH is well-positioned to lead the global Islamic finance industry.

The bank’s strategic expansion into key regional and global markets will not only enhance profitability but also drive further innovation in the Islamic finance sector. KFH remains committed to delivering excellence in Islamic banking services and creating exceptional value for its stakeholders. This commitment is reflected in the bank’s record profits, its strong market position, and its ambitious plans for the future.

In conclusion, KFH’s achievements are a testament to the bank’s strategic vision, operational excellence, and unwavering commitment to Sharia compliance. As KFH continues to expand its global reach and strengthen its position as a leader in the Islamic banking industry, it is clear that the bank’s future is bright. With its sights set on becoming one of the world’s largest banks, KFH is well on its way to shaping the future of Islamic finance for years to come.