International Financial Advisors Holding Company

1. Company Overview & Earnings Context

International Financial Advisors Holding (IFA Holding) is a Kuwait-based holding company with activities focused primarily on treasury and investments, real estate, and other investment-related businesses. The Group manages subsidiaries and investments in associates and joint ventures and invests across shares, securities, properties and financial portfolios. During H1 2026, IFA Holding remained profitable, although earnings declined significantly compared with H1 2025. At the same time, the Group recorded substantial growth in its asset base and shareholders' equity.

2. Financial Performance Snapshot

• Total Income: KD 7.09 Million (-38.0% YoY)

• Profit Before Tax: KD 5.37 Million (-48.6% YoY)

• Net Profit: KD 5.24 Million (-49.4% YoY)

• Profit Attributable to Shareholders: KD 5.22 Million (-49.4% YoY)

• Earnings Per Share (EPS): 9.19 Fils (-49.4% YoY)

• Total Comprehensive Income: KD 5.79 Million (-51.9% YoY)

Compared with H1 2025:

• Total income declined 38.0% from KD 11.45 million to KD 7.09 million.

• Profit before tax declined 48.6% from KD 10.44 million to KD 5.37 million.

• Net profit declined 49.4% from KD 10.36 million to KD 5.24 million.

• Profit attributable to shareholders declined 49.4% from KD 10.32 million to KD 5.22 million.

• EPS declined from 18.15 fils to 9.19 fils.

• Total comprehensive income declined from KD 12.03 million to KD 5.79 million.

3. Operational Highlights & Key Metrics

• Total Assets: KD 172.63 Million (+20.1% YoY)

• Total Equity: KD 141.01 Million (+15.3% YoY)

• Equity Attributable to Parent Shareholders: KD 134.90 Million

• Investments in Associates & Joint Venture: KD 76.39 Million

• Investments at FVTOCI: KD 58.17 Million

• Cash & Cash Equivalents: KD 5.61 Million

• Borrowings: KD 22.23 Million

• Net Cash from Operating Activities: KD 0.89 Million

4. Key Performance Drivers

IFA Holding's lower H1 2026 earnings primarily reflected weaker income from its investment activities. Treasury and Investments segment income declined to KD 6.78 million from KD 8.39 million, while the Group's share of results from associates and its joint venture was also materially lower than in H1 2025. Finance costs increased to KD 550,520 from KD 225,079, further weighing on profitability. However, the Group recorded a KD 3.79 million gain from the partial disposal of an associate, which supported earnings during the period.

5. Outlook & Forward Guidance

The financial statements do not provide specific quantitative guidance for the remainder of 2026. During H1, IFA Holding continued actively managing its investment portfolio, including additions and disposals involving its associate IFA Hotels and Resorts Company. The Group also expanded its investment holdings and entered into additional financing arrangements to support investments.

6. Investor Takeaway

IFA Holding's H1 2026 results present a mixed picture. Profitability weakened substantially year-on-year, with net profit and EPS both falling by approximately 49%. However, the balance sheet expanded considerably, with total assets rising 20.1% and total equity increasing 15.3% compared with June 2025. The Group also generated positive operating cash flow versus an outflow in the prior-year period, while its sizeable investment portfolio continues to form the core of its financial position.