Gulf Bank records KD 18 million in Net Profit for the first nine months of 2020
Kuwait, 03 November 2020: Gulf Bank K.S.C.P. has announced its financial results for the first nine months of 2020. The Bank recorded a net profit of KD 18 million for the nine months ending 30 September 2020, a decline of KD 19 million compared to a net profit of KD 37 million reported a year ago. This reduction was mainly driven by lower interest income on loans and lower fee / foreign exchange income offset partially by lower interest expense and lower operating expenses.
Net Loans and Advances totaled KD 4.4 billion at the end of September 2020, up KD 254 million or 6% from the end of September 2019. The non-performing loan ratio stands at 1.5% as of 30 September 2020, lower than the prior year level of 2.6%.
As of the end of September 2020, Gulf Bank’s Capital Adequacy Ratio remained strong at 17.3%, well in excess of minimum regulatory requirements.
Commenting on the results, Mr. Jassim Mustafa Boodai, Gulf Bank’s Chairman said: “Although the first nine months of 2020 have been challenging, Gulf Bank was able to deliver positive results and positive trends through our prudent and persistent cost reduction measurements. Our Kuwait-focused strategy has enabled Gulf Bank’s Consumer Banking segment to continue to outperform the industry. We are continuously adapting to the effects of the Covid-19 pandemic, and remain committed to servicing and supporting our clients during these challenging times.”
Emir of Kuwait
On the sad event of the passing of the late Emir of Kuwait HH Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah, Mr. Boodai said: ”We were deeply saddened by the passing of our late Emir HH Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah, and extend our deepest condolences to the people of Kuwait and the government. He was a man of wisdom and peace; may God have mercy on his soul.” On the occasion of nominating the previous Crown Prince HH Sheikh Nawaf Al-Ahmad Al-Jaber Al-Sabah as Emir of Kuwait, Mr. Boodai added: “We would like to congratulate HH Sheikh Nawaf Al-Ahmad Al-Jaber Al-Sabah on his assumption of the reins of power as Emir of Kuwait, and are praying to the Almighty to guide His Highness in leading Kuwait to more progress and prosperity. We would also like to extend our sincere congratulations on the appointments of HH Sheikh Mishal Al-Ahmad Al-Jaber Al-Sabah as Crown Prince.”
Gulf Bank continues to be well recognized internationally in terms of its credit worthiness and financial strength. The Bank is currently rated “A” rated bank by all the four leading credit rating agencies.
Fitch: Long Term Issuer Default Rating “A+” rating with a “Stable” outlook
S&P Global Ratings: Issuer Credit Rating “A-” rating with a “Negative” Outlook
Moody’s Investor Services: Long Term Deposits “A3” rating with a “Stable” Outlook
Capital Intelligence: Long Term Foreign Currency “A+” rating with a “Stable” outlook
On the most recent senior management promotions, Mr. Boodai commented, “We aspire to attract and promote skilled professional talent. I am happy with the recent additions to our senior management team: Mr. Mohammed Al-Qattan, General Manager of Consumer Banking; Mr. Abudulrahman Al-Saddah, Deputy Chief Risk Officer; and Mr. Momtaz Saif, Head of the Corporate Strategy Unit. I wish them all the best in their new posts, and I am confident they will continue a successful journey with Gulf Bank.”
Mr. Boodai concluded his remarks by stating: “I would like to thank everyone that contributed to these results, specifically our shareholders for their ongoing trust, and our employees for their commitment and dedication. I would also like to thank the Central Bank of Kuwait for their continuous support. Last but not least, I want to thank our customers for their loyalty, and reiterate our commitment to offering them the best banking experience.”