With A 19.4% Year-On-Year Growth In Third Quarter Net Profit

Ahmad Mohammad Al-Bahar:

• Gulf Bank’s performance demonstrates continued progress in strengthening the Bank’s financial position, driven by steady loan growth, stable asset quality, and a robust capital base.
• We are making excellent progress on our transformation journey toward becoming a Sharia-compliant institution and have commenced work in alignment with the regulatory framework.
• We enter the final quarter of 2025 with a focus on advancing our strategic transformation and maintaining operational excellence.

Sami Mahfouz:

• We have successfully capitalized on emerging opportunities to drive steady loan growth through our strategic focus and deep-rooted client relationships.
• Customer centricity remains at the heart of Gulf Bank’s strategy, driving continuous enhancement of our digital capabilities and cybersecurity framework.
• Our talent development programs are equipping employees with the knowledge and skills required for the transition to a Sharia-compliant bank.

Kuwait, 28 October 2025: Gulf Bank K.S.C.P. announced its financial results for the first nine months ending 30 September 2025. The Bank reported a net profit of KD 38.4 million for the first nine months of 2025, a slight decline of KD 1.8 million or 5% when compared to 2024 first nine months net profit of KD 40.2 million.

Additionally, Gulf Bank recorded an operating income of KD 140.5 million for the first nine months of 2025, representing a decline of 4% compared to the same period of last year. Moreover, operating profit before provisions and impairments was KD 69.0 million, representing a decline of 12% compared to the first nine months of 2024.

For the third quarter ending 30 September 2025, Gulf Bank reported a net profit of KD 14.3 million, reflecting a year-on-year increase of KD 2.3 million or 19.4%.

Financial Performance

The decline in net profit for the first nine months of 2025 is attributed to the decline in net interest income of KD 8.0 million or 6.8%, coupled with an increase in operating expenses of KD 4.1 million or 6.1%, compared to the same period of 2024. However, these declines were partially offset by an enhancement in non-interest income of KD 2.5 million or 8.7%, and the improvement in total provisions and impairments, which declined by KD 7.7 million or 21.1% year-on-year, reaching KD 28.8 million for the first nine months of 2025.

As for asset quality, the non-performing loans (NPL) ratio was 1.4% as of 30 September 2025, compared to the prior year level of 1.3%. Additionally, the Bank continues to have significant non-performing loans coverage ratio of 324% including total provisions and collaterals.

Total credit provisions as of 30 September 2025 reached KD 271 million whereas IFRS 9 accounting requirements (i.e., ECL or expected credit losses) were KD 172 million. As a result, the Bank has a healthy excess provision level of KD 99 million, above and beyond what is required by IFRS 9 accounting requirements.

Compared to 31 December 2024, total assets increased by 1.5% to KD 7.6 billion, whereas net loans and advances increased by 4.1% to KD 5.7 billion. On the other hand, total deposits stood at KD 5.6 billion and total Shareholders’ equity reached KD 839 million.

The Bank’s regulatory Tier 1 ratio of 14.3% was 2.3% above the regulatory minimum of 12% and the Capital Adequacy Ratio (CAR) of 16.4% was 2.4% above the regulatory minimum of 14%.

Steady Progress

Commenting on the financial results for the first nine months of 2025, Gulf Bank Chairman Mr. Ahmad Mohammad Al-Bahar stated: “Gulf Bank’s performance over the first nine months of the year demonstrates continued progress in strengthening the Bank’s financial position. This was driven by steady loan growth, stable asset quality, and a robust capital base.”

He continued: “The broader operating environment in Kuwait has become more favorable. The Central Bank of Kuwait’s recent decision to lower the discount rate to 3.75%, following the Federal Reserve’s 25-basis-point interest rate cut, is expected to foster a more supportive climate for credit expansion and stimulate business activity. Furthermore, Kuwait’s successful return to global debt markets with an issuance of a US $11.25 billion sovereign bond was met with a very strong investor demand. This achievement, combined with the positive momentum generated by national development projects, is set to further enhance credit conditions and bolster business confidence in the local economy.”

He added:” Alongside this strong backdrop, we are making excellent progress on our transformation journey toward becoming a Sharia-compliant institution. Following the most recent Central Bank of Kuwait’s preliminary approval to begin Sharia-compliant conversion activities, we have commenced detailed work in alignment with the regulatory framework. The Bank continues to coordinate closely with the Central Bank of Kuwait and relevant stakeholders to ensure a smooth and compliant transition, while maintaining business continuity and customer service excellence.”

Mr. Al-Bahar concluded:” We enter the final quarter of 2025 with a focus on advancing our strategic transformation, sustaining healthy loan growth, and maintaining operational excellence. On behalf of the Board, I thank our shareholders, employees, and customers for their continued trust. I also extend our appreciation to the Central Bank of Kuwait and the regulatory authorities for their ongoing guidance.”

Operational Discipline

Gulf Bank Acting Chief Executive Officer, Mr. Sami Mahfouz, stated: “Through our strategic focus and deep-rooted client relationships, we have successfully capitalized on emerging opportunities to drive steady growth. As a result, our loan book has expanded by 4.1% year-to-date, reaching KD 5.7 billion for the third quarter of 2025. This growth has been primarily driven by a strong client demand and our balanced approach to credit origination.”

Mr. Mahfouz added: “Customer centricity remains at the heart of Gulf Bank’s strategy, driving continuous enhancement of our digital capabilities and cybersecurity framework.

Turning to the Bank’s upcoming Islamic conversion, he added: “As we prepare for our conversion to a Sharia-compliant institution, we are focused on building internal readiness across all levels of the organization. Our talent development programs are equipping employees with the knowledge and skills required for the transition, while we work closely with leading technology partners to ensure systems compatibility and readiness in line with the Central Bank of Kuwait’s requirements.”

Strategic Merger Track

Gulf Bank continues its strategic evaluation of a potential merger with Warba Bank. During the quarter, Gulf Bank appointed independent financial and legal advisors to conduct a detailed review and assessment under the supervision of the Board of Directors and relevant regulators. Any future developments will be announced in accordance with disclosure requirements.

Recognitions

Gulf Bank’s achievements during the year were recognized through several international awards that highlighted its progress in digital innovation and sustainability. Moreover, Gulf Bank’s credit ratings remain among the strongest in the domestic banking sector, reaffirming its solid financial position, strong capitalization, and prudent risk management. 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 Stable Outlook. Capital Intelligence affirmed a Long-Term Foreign Currency rating for the Bank of ‘A+’ with a Stable Outlook, further highlighting the Gulf Bank’s stability and disciplined risk governance.

Key Financial indicators for the first nine months of 2025:

1. First nine months 2025 net profit of KD 38.4 million.
2. First nine months 2025 operating income of KD 140.5 million.
3. Net loans and advances grew by 4.1% year-to-date to reach KD 5.7 billion.
4. Non-performing loan ratio as of 30 September 2025 was 1.4%, with a significant non-performance loan coverage ratio of 324% including total provisions and collaterals.
5. Capital ratios as of 30 September 2025, Tier 1 ratio was 14.3% and Capital Adequacy Ratio (CAR) was 16.4%, both above regulatory minimum requirements.