Ahmad Mohammad Al-Bahar:

• Gulf Bank continues to demonstrate financial resilience, supported by its solid financial position.
• Kuwait’s institutional strength and coordinated policy response have supported the continuity of economic activity during an exceptionally challenging environment.
• The Banking sector continues to operate from a position of strength, with comfortable liquidity and capital levels.
• We monitor local and regional developments closely, while focusing on executing our strategic priorities with discipline.

Sami Mahfouz:

• We have activated our business continuity protocols in response to the evolving operating environment.
• Gulf Bank launched its new SME and Corporate banking mobile application during the first quarter of 2026.
• We achieved healthy balance sheet growth, with the Bank’s total assets surpassing KD 8.0 billion.
• We emphasis on employee wellbeing and operational readiness to effectively support customers under all circumstances.

Kuwait, 30 April 2026: Gulf Bank K.S.C.P. announced its financial results for the first three months ending 31 March 2026. The Bank reported a net profit of KD 9.4 million, in line with its 2025 first three months net profit of KD 9.4 million.

In addition, Gulf Bank recorded an operating income of KD 45.1 million for the first three months of 2026, representing an increase of 2.6% compared to the same period of last year. Moreover, operating profit before total provisions and impairments was KD 21.7 million, representing an increase of 4.0% compared to the first quarter of 2025.

Financial Performance

The first quarter of 2026 financial results were primarily driven by a stable, yet slightly improved, net interest income of KD 35.3 million, alongside an increase in net fees and commissions of 15.5% to reach KD 6.7 million. This was partially offset by a marginal increase in operating expenses by 1.3%, alongside an increase in total provisions and impairments of 6.4%.

As for asset quality, the non-performing loans (NPL) ratio was 1.3% as of 31 March 2026, compared to the prior year level of 1.5%. Additionally, the Bank continues to have significant non-performing loans coverage ratio of 312% including total provisions and collaterals.

Total credit provisions as of 31 March 2026 reached KD 260 million whereas IFRS 9 accounting requirements (i.e., ECL or expected credit losses) were KD 187 million. As a result, the Bank has a healthy excess provision level of KD 74 million, above and beyond what is required by IFRS 9 accounting requirements.

Compared to 31 December 2025, total assets increased by 4.4% to KD 8.0 billion, net loans and advances increased by 5.6% to KD 6.2 billion, total deposits increased by 3.8% to reach KD 5.9 billion, while total shareholders’ equity reached KD 828 million.

The Bank’s regulatory Tier 1 ratio of 13.7% was 2.7% above the regulatory minimum of 11% and the Capital Adequacy Ratio (CAR) of 15.7% was 2.7% above the regulatory minimum of 13%.

On the 14th of March 2026, Gulf Bank held its Annual General Assembly Meeting, where shareholders approved the distribution of a cash dividend of 9 fils per share for the year 2025, representing a 68% cash payout ratio per share, in addition to a distribution of 5% bonus shares.

Sovereign Stability

Commenting on the financial results for the first quarter of 2026, Gulf Bank Chairman Mr. Ahmad Mohammad Al-Bahar stated: “We are operating in an exceptionally challenging environment, as Kuwait is facing hostile security developments and heightened regional tensions during the first quarter of 2026. While these conditions have weighed on market sentiment and affected parts of the local and regional economic landscape, the State’s institutional strength and coordinated policy response have supported the continuity of economic activity.”

He continued: “During the quarter, key sovereign indicators remained robust. Kuwait’s credit ratings were reaffirmed by leading rating agencies, reflecting the country’s strong financial position and external buffers. In parallel, the Kuwait Ministry of Finance presented the draft budget for FY2026/2027 with no changes, describing the fiscal position as stable, with sufficient liquidity to meet both near- and medium-term obligations. While current conditions may place pressure on fiscal balances, Kuwait continues to benefit from funding flexibility supported by domestic market depth and access to international capital markets.”

“In response to these developments, the Central Bank of Kuwait introduced targeted regulatory and macroprudential measures, including adjustments to liquidity requirements, expansion of lending limits, and the partial release of capital conservation buffers. These measures are aimed at enhancing the banking sector’s flexibility, supporting credit flows to the economy, and safeguarding financial stability.”

Mr. Al Bahar added: “Against this backdrop, Gulf Bank continues to demonstrate resilience in its first quarter of 2026 financial performance, supported by its solid financial position. Despite ongoing headwinds, the Bank sustained its profitability, reporting a net profit of KD 9.4 million, broadly consistent with the first quarter of last year.”

Operational Progress

Commenting on the operational performance of Gulf Bank, Acting Chief Executive Officer Mr. Sami Mahfouz said: “During the first quarter of 2026, and in response to the evolving operating environment, the Bank activated its business continuity and risk management protocols in line with established frameworks and the directives of the Central Bank of Kuwait. This ensured the uninterrupted operation of our systems and the continued delivery of services across all channels. Our customers maintained full access to the Bank’s services through our branch network, digital platforms, call center, and ATM infrastructure, enabling seamless and secure transactions for both individual and corporate clients. At the same time, we placed strong emphasis on employee wellbeing and operational readiness, ensuring that our teams remain fully equipped to support customers effectively under all circumstances.”

Mr. Mahfouz added: “Operationally, we continued to advance our digital capabilities, enhancing the accessibility, security, and efficiency of our services. At the beginning of the year, Gulf Bank announced the launch of its new mobile application dedicated to SME and Corporate banking, designed to meet the evolving needs of businesses across various sectors. The application enables faster decision-making, particularly for critical approvals such as payroll transfers and other transactions carried out by corporate teams, while providing greater flexibility and control over banking activities.”

On the financial performance of the Bank during the first quarter of 2026, Mr. Mahfouz stated: “Financially, Gulf Bank delivered a stable performance during the first quarter of 2026, reflecting the consistency and resilience of its core operating model. The Bank continued to record healthy balance sheet expansion, with total assets increasing by 4.4% year to date to surpass KD 8.0 billion, supported by a 5.6% growth in net loans, reaching KD 6.2 billion.

Additionally, the Bank’s operating income rose to KD 45.1 million, marking a 2.6% increase year on year. This performance was primarily driven by a 0.5% growth in net interest income, alongside a 15.5% increase in net fees and commissions. These results underscore the Bank’s ability to sustain strong business activity while maintaining a strategic focus on diversifying its income streams and enhancing overall revenue quality.”

Credit Ratings

Gulf Bank’s financial strength and operating profile were affirmed by leading 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 Stable Outlook. Capital Intelligence Ratings affirmed a Long-Term Foreign Currency rating of ‘A+’ with a Stable Outlook, further highlighting the Bank’s sound risk profile and prudent management practices.

Appreciation

Mr. Al-Bahar concluded his remarks by saying: “As we progress through 2026, we will continue to closely monitor local and regional developments and respond appropriately, while maintaining our focus on executing the Bank’s strategic priorities with discipline. We remain hopeful for a swift resolution of the current situation and reaffirm our wishes for the continued safety and security of Kuwait.

Key Financial indicators for the first quarter 2026:

• First Quarter 2026 net profit of KD 9.4 million, inline with last year.
• First Quarter 2026 operating income of KD 45.1 million, up 2.6% year on year.
• Net fees and commissions increased 15.5% year on year.
• Net loans and advances grew by 5.6% year-to-date to reach KD 6.2 billion.
• Non-performing loan ratio as of 31 March 2026 was 1.3%, with a solid non-performance loan coverage ratio of 312% including total provisions and collaterals.
• Capital ratios as of 31 March 2026, Tier 1 ratio was 13.7% and Capital Adequacy Ratio (CAR) was 15.7%.