Kuwait, 28 July 2021: Gulf Bank K.S.C.P. (“The Bank”) announced its financial results for the first half ending 30 June 2021. The Bank recorded a net profit of KD 16.5 million, an increase of KD 4.8 million or 40% compared to the first half of 2020 net profit of KD 11.8 million. The bank recorded an operating profit of KD 43.1 million, and took provision of KD 25.8 million, to reach the net profit of KD 16.5 million.

 

The improvement in Net profit was mainly driven by a 6.5% or KD 4.0 million increase in net interest income mainly due to a decline in interest expense.

 

Compared with 31st December 2020, total assets increased by 2.9% to KD 6.3 billion, gross loans and advances to customers climbed by 4.1% to KD 4.6 billion, and shareholders’ equity increased by 0.8% to reach KD 643 million.

 

The Bank’s regulatory capital ratios are at a strong level with the Tier 1 ratio reaching 14.30% and was 480 basis points above the regulatory minimum of 9.5%. While the Capital Adequacy Ratio of 16.59% was 509 basis points above the regulatory minimum of 11.5%.

 

Commenting on the results, Gulf Bank’s Chairman, Mr. Jassim Mustafa Boodai, said: “I am pleased to announce that Gulf Bank has sustained its strong performance in 2021, recording KD 16.5 million in net profit during our first half of the year. These results are a testament to Gulf Bank’s sound policies, prudent management practices, as well as strategy built on maximizing value for our shareholders. Moving forward, we remain focused on our key pillars of:

• promoting corporate banking segment growth by increasing our product offerings and focusing on small and medium-sized enterprises;
• increasing our retail banking market share by targeting the youth and the affluent client segments;
• and concluding our Bank’s digital transformation process to improve our efficiency and competitiveness.

 

Strong Capital

 

On the Bank’s regulatory capital position and recent bond issuance, Gulf Bank’s CEO, Mr. Tony Daher, commented: “Despite the challenges that we continue to face as a result of the Covid 19 pandemic, Gulf Bank has successfully completed the redemption of its existing KD 100 million subordinated Tier 2 bonds, and the issuance of new KD 50 million Subordinated Tier 2 Bonds which was oversubscribed. This issuance optimizes the Bank’s capital adequacy, in compliance with Basel III frameworks, and supports our overall investment plans towards making Gulf Bank the leading Bank of the Future.”

 

Partnership with Murex

 

As part of Gulf Bank’s ongoing digital transformation plan, Gulf Bank recently announced the successful launch of its new MX.3 system in partnership with Murex for the development and automation of the Bank’s capital markets and treasury platforms. The new system is provided by Murex, the leading global financial technology firm providing new treasury and risk management solutions that cater to today’s financial markets.

 

Commenting on the launch of the Murex platform, Mr. Daher said: “We are very happy to launch our new treasury system after an 18-month partnership with Murex. The integrated solutions will offer a robust technological infrastructure that meets the evolving requirements of today’s customers and provide an even more seamless workflow and better risk management. Moreover, the launch of the new treasury system seeks to make the most of our ongoing digital transformation, transforming Gulf Bank into a fully integrated digital bank.”

 

Gulf Bank’s aspiration is to be the leading Bank of the Future, where the Bank is spearheading its digital transformation with tech-driven solutions, fostering a performance-driven culture based on meritocracy and engagement, and adopting world-class risk management practices.

 

Innovative Products

 

As part of its ongoing commitment to enhancing its product offering, Gulf Bank also launched its new MOUJ Cashback Prepaid card, the first card of its kind in the Middle East to combine both cashback and pre-paid features to its users, offering discounts at more than 850 outlets across Kuwait.

 

In addition, Gulf Bank earlier this year launched the new MasterCard Rose Gold credit card targeting women, with tailored benefits and exclusive discounts designed to reward the female customers.

 

Raising Awareness with Diraya

 

With the objective of customer protection, Gulf Bank continues to support the Diraya campaign, an awareness campaign initiated by the Central Bank of Kuwait and the Kuwait Banking Association. Gulf Bank’s efforts is a result of the Bank commitment to educate customers, raise their awareness about their banking rights, as well as cybersecurity, and the overall role of the banking industry in developing the economy.

 

“A” Credit Ratings

 

Gulf Bank continues to be well recognized in terms of its creditworthiness and financial strength internationally, rated “A” by three leading credit rating agencies.

 

Moody’s Investors Service maintained the Long-Term Deposits Rating of “A3” with a “Stable” outlook.

 

Fitch Ratings affirmed the Bank’s Long-term Issuer Default Rating of “A+” with a “Negative” outlook.

 

Capital Intelligence affirmed Gulf Bank’s Long-term Foreign Currency Rating of “A+” with a “Stable” outlook.

 

Thanks & Appreciation

 

Mr. Boodai concluded his remarks by stating: “On behalf of the Board of Directors, we would like to extend our appreciation to the Central Bank of Kuwait and the Capital Markets Authority for their dedicated efforts in supporting and promoting Kuwait’s banking sector. I would also like to thank our shareholders, customers, and Board of Directors for their valuable contributions, with a special note of appreciation to our team members for their loyalty and dedication.”