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Gulf Bank records a net profit of KD 63.6 million in 2019, an increase of 12% over 2018

Kuwait, 09 February 2020: Gulf Bank K.S.C.P. (“Bank”) announced its financial results for the year ending 2019.

Financial Summary

Gulf Bank reported an increase of 12% in net profit to KD 63.6 million. Earnings per share was up 12% to 22 fils and the Board of Directors is recommending a cash dividend of 11 fils per share (50% payout ratio) for shareholders’ approval at the Annual General Meeting to be held in March 2020.

Customer loans reached another all-time high of KD 4.5 billion, an increase of KD 261 million or 6.2% vs. the end of 2018 and up 20% (KD 750 million) over the last three years. This growth in 2019 was well balanced as roughly half came from the Bank’s Corporate segment and the other half came from the Bank’s Consumer segment.

The non-performing loan ratio over the last two years has stabilized near industry norms and stood at 1.1% at the end of 2019.

Total Credit Provisions ended 2019 at KD 296 million whereas IFRS 9 accounting requirements (i.e., ECL or expected credit losses) were KD 190 million. So, the Bank has very healthy excess provisioning levels of KD 106 million.

Gulf Bank’s regulatory capital ratios remained strong as the Tier 1 ratio of 13.8% was 1.8% above the Bank’s regulatory minimum of 12% and the Capital Adequacy Ratio (CAR) of 17.1% was 3.1% above the Bank’s regulatory minimum of 14%.

Gulf Bank maintained its ‘A’ ratings from the four major credit rating agencies:

  • Moody’s Investors Service maintained the Long-Term Deposits Rating of “A3” with a “Positive” outlook
  • S&P Global Ratings affirmed the Bank Issuer Credit Rating at “A-” with a “Stable” outlook
  • Fitch Ratings affirmed the Bank Long-term Issuer Default Rating of “A+” with a “Stable” outlook
  • Capital Intelligence affirmed Gulf Bank’s Long-term Foreign Currency Rating of “A+” with a “Stable” outlook.

Commenting on the results, Mr. Omar Kutayba Alghanim, Gulf Bank’s Chairman said: “We are extremely happy with our Bank’s performance in 2019. We delivered another great set of results as we continued to enhance the Bank’s position to achieve sustainable growth for our customers, shareholders, regulators, employees, and communities.”

Business Highlights

Gulf Bank is well positioned to serve its Consumer and Corporate clients in Kuwait and provide them with tailored advice and solutions.

In our Consumer Banking segment, Gulf Bank maintained its focus to deliver a wide range of simple and reliable banking products /experiences to differentiated customer segments supported by a network of 59 branches, over 300 ATMs, convenient mobile / online banking sites, and an advanced 24 x 7 call center. As a result, Consumer loans grew 9% over the most recent year and are on track to grow at nearly two times the industry growth rate for a second year in a row.

Throughout 2019, Gulf Bank’s Corporate Banking segment remained committed to supporting Kuwait’s National Development Plan arising from the vision of His Highness the Amir Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah for “New Kuwait Vision 2035”. Accordingly, the Bank continued to provide funding to various vital projects in the oil, construction, and infrastructure sectors through direct financing or syndications with other local banks.

Despite the challenging market conditions during 2019, Gulf Bank grew its corporate loan book by 4.6% and maintained its strong presence as a key domestic player.


Sustainability has taken the lead in Gulf Bank’s success, playing an integral role in its annual corporate social responsibility initiatives. The Bank’s approach consists of three pillars: social sustainability, economic sustainability, and environmental sustainability.

During the year 2019, Gulf Bank continued to sponsor INJAZ-Kuwait, 642 Marathon and Ajyal program. During the year, Gulf Bank also extended its economic sustainability to promote financial literacy and create a culture of financial awareness. In addition, the Bank focused on the inclusion and diversity culture through employment of special needs talent, gender equality and women empowerment.

“Gulf Bank is committed to maintaining a robust sustainability program and plays a vital role in contributing to its community in ways that extend well beyond finance. By proudly spearheading sustainability initiatives that help to shape the future of the communities we serve, we are demonstrating a larger commitment to our beloved Kuwait.” said Mr. Alghanim.


Gulf Bank continued to be acknowledged by external organizations. During 2019, the Bank was recognized for its Straight-Through Processing (STP) by Deutsche Bank’s “Operational Excellence Award”. In addition, Gulf Bank was chosen as 2019’s recipient of the “Best Nationalization Initiative in the Private Sector” award in recognition for its various Kuwaitization achievements throughout the past year, during an awards ceremony hosted by the GCC Government Human Resources Awards.


Mr. Alghanim concluded his remarks by stating: “On behalf of the Board of Directors, we express our gratitude and 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 like to offer our sincere thanks to our valued customers for their continued trust in Gulf Bank as their loyalty is at the core of our success. Finally, I would like to thank the entire Gulf Bank team for their dedicated service and being part of the Gulf Bank family.”

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