ShareProfit increases 10% over 2015, earnings per share 15fils
Gulf Bank head office, Kuwait City.
Gulf Bank ChairmanOmar Kutayba Alghanim
KUWAIT: Gulf Bank K.S.C.P. announced yesterday its financial results for the year ending 31 December 2016. The Bank recorded a net profit of KD 43 million (earnings per share of 15 fils), an increase of 10% over the previous year. The Board of Directors has recommended a cash dividend of 7 fils per share, an increase of 75 percent compared with 4 fils per share in the prior year.
Loan quality continued to improve; gross credit costs (specific provisions plus write-offs) declined by 16 percent to KD 72 million compared to KD 85 million in 2015. Non-performing loans (NPLs) declined to KD 93 million or 2.4 percent of total loans, levels that have not been seen since 2007.
Commenting on the results, Omar Kutayba Alghanim, Gulf Bank's Chairman said: "These past three years have marked significant milestones in the transformation of Gulf Bank, moving it solidly forward on the path of growth, and meeting a number of key strategic objectives. Today, I am pleased to announce that Gulf Bank has again achieved double-digit net income growth in a very competitive industry and challenging economic environment."
Alghanim continued: "The Bank enjoys a strong capital adequacy ratio of 18.5 percent which is well above the regulatory requirement of 14 percent. The capital of the Bank was enhanced by our successful issuance of KD 100 million of Tier II capital in May 2016. The assets of the Bank were steady at KD 5,467 million while total shareholders' equity was up by 7 percent to KD 573 million. Customer loans ended the year at KD 3,446 million. In terms of profitability, the Bank's earnings per share for the year ending 2016 was 15 fils compared to 13 fils for the year ending 2015. The return on average assets was 0.79 percent compared to 0.72 percent in 2015 and the return on average equity was 7.73 percent compared to 7.43 percent for the previous year."
Gulf Bank Rated "A" By Leading International Ratings Agencies
Gulf Bank continues to enjoy an "A" rating from the top three international rating agencies: Moody's Investors Services (A3); Fitch Ratings (A+); and Standard & Poor's - S&P (A-). During this year, all three rating agencies affirmed the Bank's ratings and its stable outlook and revenue generating ability.
Commenting on Gulf Bank's ratings, Alghanim continued: "The affirmation of Gulf Bank's stability and revenue generating ability by the three leading credit rating agencies confirms our continuous dedication to create value for our stakeholders and provide competitive services to our loyal customers."
Gulf Bank's growth and soundness was strongly acknowledged by the financial services and banking industry on both regional and international levels. Gulf Bank won The Asian Banker regional awards for: "Best Credit Card Product in the Middle East for Gulf Rewards", "Internet and Mobile Security Technology Implementation of the Year in Middle East and Africa", and "Enterprise Risk Technology Implementation of the Year in Middle East and Africa." Furthermore, at the end of the 2016, Gulf Bank was notified by Guinness World Records that it would win the 'largest prize linked to a bank account' in the world for its Al-Danah account's KD 1 million prize. Gulf Bank received the award during the annual Al-Danah draw that took place on 5 January 2017.
Alghanim concluded by saying: "I would like to thank our valued customers for their continued trust in Gulf Bank. I would also like to extend my sincere appreciation to our Shareholders, Board of Directors, the Central Bank of Kuwait and the Capital Markets Authority for their ongoing support throughout the year. Moreover, I would like to thank our staff for their dedicated service and for being part of the Gulf Bank family."
