Ahmad Mohammad Al-Bahar:

• We have begun the groundwork to the potential conversion of the Bank into a Sharia-compliant institution in alignment with our long-term vision for sustainable growth.
• Gulf Bank’s financial performance in the first quarter of 2025 reflects the ongoing challenges facing the financial sector including a declining interest rate environment.
• Recent government reforms present a promising outlook for national development.
• The proposed Real Estate Financing Law is designed to ease existing difficulties in the public housing segment and open a new revenue and growth stream for local banks.

Waleed Khaled Mandani:

• While our financial performance was impacted by sector-wide factors, we made meaningful progress on several strategic fronts.
• Gulf Bank successfully closed its debut international syndicated loan transaction, raising US$650 million through a senior unsecured term facility.
• We continued to invest in the long-term strength of our leadership team by advancing experienced professionals into key executive roles.
• We remain committed to supporting our clients, driving operational excellence, and executing on our strategic initiatives.

Kuwait, 30 April 2025: Gulf Bank K.S.C.P. announced its financial results for the first three months ending 31 March 2025. The Bank reported a net profit of KD 9.4 million, a decline of KD 3.5 million or 27% compared to 2024 first three months net profit of KD 12.9 million.

In addition, Gulf Bank recorded an operating income of KD 44.0 million for the first three months of 2025, representing a decline of 9% compared to the same period of last year. Moreover, operating profit before provisions and impairments was KD 20.9 million, representing a decline of 22% compared to the first quarter of 2024.

Financial Performance

The decline in net profit for the first quarter of 2025 is attributed to the decline in net interest income of KD 3.3 million or 9%, coupled with a decline in non-interest income of KD 1.0 million or 10%, compared to the same period of prior year, respectively. In addition, operating expense has increased by KD 1.5 or 7%, when compared to first quarter of 2024. However, this was offset by a decline in the total provisions which reached KD 11.0 million in the first quarter of 2025, down by KD 2.1 million or 16% when compared to the same period of last year.

As for asset quality, the non-performing loans (NPL) ratio was 1.5% as of 31 March 2025, compared to the prior year level of 1.2%. Additionally, the Bank continues to have significant non-performing loans coverage ratio of 305% including total provisions and collaterals.

Total credit provisions as of 31 March 2025 reached KD 277 million whereas IFRS 9 accounting requirements (i.e., ECL or expected credit losses) were KD 183 million. As a result, the Bank has a healthy excess provision level of KD 94 million, above and beyond what is required by the IFRS 9 accounting requirements.

Compared to 31 December 2024, total assets increased by 1% to KD 7.5 billion, net loans and advances increased by 3% to KD 5.6 billion, while total deposits stood at KD 5.5 billion and total Shareholders’ equity reached KD 808 million.

The Bank’s regulatory Tier 1 ratio of 14.9% was 2.9% above the regulatory minimum of 12% and the Capital Adequacy Ratio (CAR) of 17.0% was 3.0% above the regulatory minimum of 14%.

On the 22nd of March 2025, Gulf Bank held its Annual General Assembly Meeting, where shareholders approved the distribution of a cash dividend of 10 fils per share for the year 2024, representing a 63% cash payout ratio per share, in addition to a distribution of 5% bonus shares.

Growth Foundations

Commenting on the financial results for the first quarter of 2025, Gulf Bank Chairman Mr. Ahmad Mohammad Al-Bahar stated: “Gulf Bank’s financial performance in the first quarter of 2025 reflects the ongoing challenges facing the financial sector. Despite ongoing headwinds, Gulf Bank’s underlying fundamentals remain strong, supported by a resilient balance sheet, sound risk management, and a clear strategic direction. While net profit of KD 9.4 million and operating income of KD 44.0 million in the first quarter of 2025 were lower than the same period last year, this was driven by systemic factors, including a declining interest rate environment, which continued to exert pressure on net interest margins and overall profitability."

He continued: "The global economic landscape remains volatile. Geopolitical tensions, newly imposed tariffs, and ongoing trade restrictions are weighing on market confidence. These recent developments may affect government capital spending, particularly on development projects, which could slow credit demand and investment momentum."

"Locally, recent government reforms present a promising outlook for national development. The approval of the long-anticipated Public Liquidity and Finance Law, with a borrowing ceiling of KD 30 billion, will enable the government to finance strategic infrastructure initiatives and support efforts to diversify revenue sources beyond the oil sector. This measure is expected to stimulate overall activity and create new opportunities for growth within the banking industry. Furthermore, the proposed Real Estate Financing Law is designed to ease existing difficulties in the public housing segment by permitting commercial banks to provide housing finance solutions, thereby opening a new revenue and growth stream for local banks. These legislative, among other advancements, align with Kuwait’s Vision 2035 and are expected to boost investor confidence and support long-term prosperity."

Strategic progress

Commenting on the operational performance of Gulf Bank, Acting Chief Executive Officer Mr. Waleed Khaled Mandani said: “As we reflect on our performance in the first quarter of 2025, we remain focused on delivering long-term value, amidst the pressures of the macroeconomic landscape. While our financial performance was impacted by sector-wide factors, we made meaningful progress on several strategic fronts that reinforce the Bank’s underlying strength and long-term direction.

During the quarter, Gulf Bank successfully closed its debut international syndicated loan transaction, raising US$650 million through a senior unsecured term facility. The transaction, which was significantly oversubscribed, attracted strong participation from both regional and global institutions, underscoring investor confidence in the Bank’s credit profile and strategic vision. This diversifies our funding base, enhances financial flexibility, and positions us to support future growth opportunities more effectively.

In parallel, we continued to invest in our most valuable asset, our people. During the quarter we continued to invest in the long-term strength of our leadership team by advancing experienced professionals into key executive roles. This reflects our commitment to developing national talent and building leadership from within. By nurturing internal capabilities, we promote continuity, reinforce our culture, and enhance our ability to navigate a dynamic and evolving market landscape.

Looking ahead, we remain committed to supporting our clients, driving operational excellence, and executing on our strategic initiatives, as we navigate the evolving economic landscape with resilience and purpose.”

Credit Ratings

Gulf Bank’s financial strength and operational resilience were affirmed by leading credit rating agencies. Fitch Ratings assigned a Long-Term Issuer Default Rating (IDR) of ‘A’ with a Stable Outlook, while Moody’s rated long-term deposits at ‘A3’ with a Positive Outlook. Capital Intelligence affirmed a Long-Term Foreign Currency rating of ‘A+’ with a Stable Outlook, further highlighting the Bank’s stability and sound risk management practices.

Appreciation

Mr. Al-Bahar concluded his remarks by saying: “As we progress through 2025, Gulf Bank remains focused on executing its strategic priorities with discipline and resilience. In line with our long-term vision for sustainable growth, we have initiated the groundwork for the potential conversion to a Sharia-compliant institution (subject to regulatory approvals), an important step aligned with our long-term vision for sustainable growth.

On behalf of the Board of Directors, I extend our sincere appreciation to our shareholders for their continued trust, our employees for their dedication, and the Regulatory Authorities for their valued support. Most importantly, we thank our customers for their loyalty and reaffirm our commitment to delivering a best-in-class banking experience.”

Key Financial indicators for the first quarter 2025

1. First Quarter 2025 net profit of KD 9.4 million.
2. First Quarter 2025 operating income of KD 44.0 million.
3. Net loans and advances grew by 3% year-to-date to reach KD 5.6 billion.
4. Non-performing loan ratio for the First Quarter 2025 was 1.5%, with a solid non-performance loan coverage ratio of 305% including total provisions and collaterals.
5. Capital ratios as of 31 March 2025, Tier 1 ratio was 14.9% and Capital Adequacy Ratio (CAR) was 17.0%.