Gulf Bank records KD 27.5 million in Net Profit for the first nine months of 2021 Net profit increased by 50% compared to prior year
Kuwait, 25 October 2021: Gulf Bank K.S.C.P. has announced its financial results for the first nine months of 2021. The Bank recorded a net profit of KD 27.5 million for the nine months ended 30 September 2021, an increase of 50% compared to a net profit of KD 18.4 million for the prior period.
The Bank recorded an operating income of KD 125.5 million for the nine months ended September 2021, an increase of 8% compared to the same period of 2020.
The improvement in Net Profit was mainly driven by a 6% or KD 5.8 million increase in net interest income, a 14% or KD 3.4 million improvement in non-interest income and a decline of 24% or KD 12.0 million in total provisions.
As for asset quality, Gulf Bank booked KD 37.6 million in total provisions for the nine months ended 30 September 2021, a reduction of 24% in comparison to the same period of last year. The Bank continues to have significant coverage ratio of 472% including total provisions and collaterals, whereas the non-performing loan (NPL) ratio stood at 1.3% as of 30 September 2021, lower than the prior year level of 1.5%.
Compared to 30 September 2020, total assets increased by 7% to KD 6.3 billion, gross loans and advances to customers climbed by 4% to KD 4.7 billion, and shareholders’ equity increased by 5% to reach KD 653.6 million. Customer deposits reached KD 4.1 billion, an increase of 5% compared to the prior year.
Gulf Bank capital ratios are at an optimal level, with the Capital Adequacy Ratio as at the end of September 2021reaching 16.2%, which is well in excess of minimum regulatory requirements.
Commenting on the results, Mr. Jassim Mustafa Boodai, Gulf Bank’s Chairman said: “Gulf Bank continued its strong performance throughout the third quarter of 2021 with a noticeable improvement in many key indicators. The strong business growth, stable asset quality and resilient capital ratios are testaments of our prudent strategy and sound risk management.” Mr. Boodai added: “We have witnessed an accelerated and positive impact on the businesses and the economy in general, with the intensified vaccination rollout covering more than 80% of the population and the opening of the country. We hope it will continue at this pace in the coming phase, and head towards a full recovery from the pandemic.”
“A” Credit Ratings
Gulf Bank continues to be well recognized in terms of its creditworthiness and financial strength internationally, rated “A” by three leading credit rating agencies.
Moody’s Investors Service maintained the Long-Term Deposits Rating of “A3” with a “Stable” outlook.
Fitch Ratings affirmed the Bank’s Long-term Issuer Default Rating of “A+” with a “Negative” outlook.
Capital Intelligence affirmed Gulf Bank’s Long-term Foreign Currency Rating of “A+” with a “Stable” outlook.
Gulf Bank is spearheading its digital transformation by providing technology solutions, fostering a performance-driven culture based on meritocracy and engagement, and adopting world-class risk management practices. Mr. Tony Daher, CEO of Gulf Bank, commented: “The new strategy is based on a comprehensive digital transformation, and aims to assert the Bank’s pioneering position as the leading Kuwaiti Bank of the future. After many successes and achievements on the operational front, the Bank is now turning to the future with a strategy that provides customers with simple and innovative services to facilitate their lives and achieve sustainable growth.”
“Gulf Bank’s new strategy aims to provide customers with an unprecedented banking experience in Kuwait. Recently, we announced that customers can now open bank accounts in just under a minute, marking a new era of digital banking services with the simplest and fastest account onboarding process in Kuwait,” continued Mr. Daher. “One of the key pillars of Gulf Bank’s 2025 strategy is the investment in integrated technological solutions, a transformation which will be tangible to all those who are connected with Gulf Bank.”
Mr. Daher also touched on the Bank’s ongoing sustainability initiatives, commenting: “Sustainability is an important and integral part of our strategy. We are committed towards our stakeholders, community, and the overall economy. In this respect, we are proud to announce that Gulf Bank will very soon be issuing its first official sustainability report. The baseline report will provide a consolidated view of Gulf Bank’s contribution to sustainability development in the financial sector. The report provides a road map on how we plan to take this initiative to the next level. Our approach has been based on several sustainability-related frameworks including Global Reporting Initiative (GRI), UN Sustainable Development Goals (SDGs), and Kuwait Boursa sustainability disclosures.”
Gulf Bank’s major sustainability contributions during the third quarter, included a sponsorship of a digital talk show highlighting women’s voices and female success stories in the workplace. In August, Gulf Bank also sponsored the National Union of Kuwaiti Students (NUKS) new student orientation for high school graduates as part of its promise to support and empower Kuwaiti youth. As part of its internal efforts to support sustainability, Gulf Bank also organized a new initiative to address paper waste and printing requirements more effectively.
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.”