Gulf Bank records 15% increase in Q1 net profit

Bank on the right track in delivering sustainable results: Alghanim

Omar Kutayba Alghanim

KUWAIT: Gulf Bank K.S.C.P. announced its financial results for the first quarter of 2018. The Bank recorded a net profit of KD 10.8 million, an increase of 15 percent over the same period in 2017. The Bank generated a net interest income of KD 36.8 million during the first quarter of 2018, 23 percent above the previous year, and an operating income of KD 48 million, which is a 9 percent increase over the same period in 2017. The operating profit before provisions/impairment losses was KD 32.6 million during the first quarter of 2018, recording growth of 9 percent, over the same period in 2017.
In addition, credit costs (total provisions and write-offs minus recoveries) declined 15.2 percent in the first quarter of 2018 compared to the same period of 2017.

Total general provisions on the balance sheet stood at KD 219 million, representing nearly 37 percent of shareholders’ equity, while total assets stood at KD 5.7 billion. Commenting on the results, Omar Kutayba Alghanim, Gulf Bank’s Chairman said, “I am pleased to announce that the Bank started the year positively with an increase of 15 percent in our first quarter net profit compared to the same period last year. These great results highlight the Bank’s progress quarter after quarter, and confirm that we are on the right track in delivering sustainable results.”

During the first quarter of 2018, Gulf Bank held its Annual General Meeting for the fiscal year 2017. During the meeting, shareholders approved a cash dividend of 9 fils per share, an increase of 29 percent compared with 7 fils per share in the previous year.

Gulf Bank now rated “A”
Gulf Bank is now rated “A” by all four leading credit international rating agencies: Moody’s Investors Service, S&P Global Ratings, Fitch Ratings and now, Capital Intelligence. As part of their 2017 annual credit rating review, Capital Intelligence, the international credit rating agency, upgraded Gulf Bank’s Financial Strength Rating to “A-” from “BBB+” with a “Stable” outlook. “I am very proud that Gulf Bank has been rated “A” by the top rating agencies across the board for the first time since 2008. This is a huge milestone for the Bank and is an affirmation of Gulf Bank’s solid capital, sound liquidity position and sustained improvement in loan asset quality matrices,” commented Alghanim.

The Bank was awarded “Best Retail Bank” and “Best Mobile Banking App” by International Finance magazine. The Bank was also recognized by the Arabian Society for Human Resources Management (ASHRM) for its youth empowerment initiatives through the AJYAL Development Program, which celebrated the graduation of its third class earlier this year. The Bank also continued a long-standing relationship with the Manpower and Government Restructuring Program (MGRP), sponsoring the Program’s Career Fair in early February.

Alghanim concluded his remarks by stating, “I would like to thank everyone that contributed to these strong results. I’d also like to thank our shareholders and the Central Bank of Kuwait for their continued support. I especially want to thank our customers for their loyalty and reiterate our commitment to place them at the center of everything we do.”

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