Ahmad Mohammad Al-Bahar:

• We are proud of the Bank’s performance in the first half of the year, despite a challenging operating environment and regional tensions.
• Our results reflect the strength of our banking business, the resilience of our financial position and consistent execution.
• Continued sovereign and domestic debt issuances strengthen funding flexibility and deepen the local debt market.
• Looking ahead, Kuwait's development agenda and capital spending plans provide a supportive backdrop for economic growth.

Sami Mahfouz:

• Our strong growth in loans and advances reflects our ability to grow the business while maintaining discipline.
• The decline in provisions and impairment losses highlights the quality of our lending portfolio and risk management practices.
• Total assets surpassed KD 8 billion, reflecting the continued expansion of our core banking activities.
• We continued to advance our readiness for the transition to Islamic banking, positioning Gulf Bank for its next phase of growth.

Gulf Bank K.S.C.P. announced its financial results for the first half ending 30 June 2026. The Bank reported a net profit of KD 27.4 million, an increase of KD 3.4 million or 14.1% compared to 2025 first half net profit of KD 24.0 million.

In addition, Gulf Bank recorded an operating income of KD 94.3 million for the first half of 2026, representing an increase of 2.7% compared to the same period of last year.

As for the second quarter ending 30 June 2026, Gulf Bank reported a net profit of KD 18.0 million and an operating income of KD 49.2 million, both representing an increase of 22.6% and 2.9% respectively, when compared to the same period of the prior year.

Financial Performance

The improvement in net profit for the first half of 2026 is attributed to the increase in net interest income of 1.0% coupled with a strong growth in non-interest income of 9.6%, specifically in net fees and commissions, that has reached KD 14.7 million representing an increase of 13.3% for the first half of 2026 when compared to the same period of last year. However, this improvement in operating income has been partially offset by an increase of 8.0% in operating expenses. In addition, the improvement in total provisions and impairment losses, which declined by KD 4.8 million or 24.6% year-on-year, has contributed to the enhancement of net profit of the Bank for the first half of 2026.

As for asset quality, the non-performing loans (NPL) ratio was 1.2% as of 30 June 2026, compared to the prior year level of 1.4%. Additionally, the Bank continues to have significant non-performing loans coverage ratio of 312% including total provisions and collaterals.

Total credit provisions as of 30 June 2026 reached KD 251 million whereas IFRS 9 accounting requirements (i.e., ECL or expected credit losses) were KD 177 million. As a result, the Bank has a healthy excess provision level of KD 74 million, above and beyond what is required by the IFRS9 accounting requirements.

Compared to 31 December 2025, total assets increase by 5.1% to KD 8.1 billion, whereas net loans and advances increased by 7.6% to KD 6.3 billion. On the other hand, total deposits stood at KD 6.0 billion and total Shareholders’ equity reached KD 846 million.

The Bank’s regulatory Tier 1 ratio of 13.8% was 2.8% above the regulatory minimum of 11% and the Capital Adequacy Ratio (CAR) of 15.8% was 2.8% above the regulatory minimum of 13%.

Economic Resilience

Commenting on the financial results for the first half of 2026, Gulf Bank Chairman Mr. Ahmad Mohammad Al-Bahar stated: “We are pleased with Gulf Bank’s performance during the first half of 2026, with net profit reaching KD 27.4 million, representing a positive increase of 14.1% compared to the prior year. This performance is particularly encouraging given the challenging operating environment and regional tensions witnessed since the beginning of the year. The results reflect the strength of our core banking business, the resilience of our financial position, and our consistent approach to execution”.

He added: “The first half of 2026 reinforced the importance of maintaining strong fundamentals and a prudent approach to growth. Despite ongoing regional challenges, Kuwait's economy remained broadly stable, supported by the Central Bank of Kuwait’s decision to maintain the benchmark discount rates unchanged during the period, which supported economic stability and provided greater visibility for businesses and financial institutions. At the same time, the continued sovereign debt issuances both domestically and international represent an important step in strengthening funding flexibility and developing the local debt market. This is positive for the local economy, as it supports fiscal planning, enhances market depth, and provides additional investment instruments for banks and institutional investors. Furthermore, the recently announced State Budget for fiscal year 2026/2027 reflects the Government’s commitment to capital spending, with approximately KD 3.1 billion allocated to capital projects. This ongoing investment in strategic infrastructure developments is expected to stimulate economic activity and create financing opportunities across the banking sector”.

On the current regional developments, Mr. Al-Bahar said: “We continue to monitor geopolitical developments closely. While regional tensions may weigh on sentiment and business confidence, Kuwait’s banking sector remains well capitalized and liquid. We are hopeful that current conflicts will be resolved peacefully, contributing to greater regional stability and stronger economic prospects”.

Business Momentum

Commenting on the operational performance of Gulf Bank, Acting Chief Executive Officer Mr. Sami Mahfouz said: “Gulf Bank delivered strong business momentum during the first half of 2026, with net loans and advances growing by 7.6% year to date. This growth was achieved while maintaining a disciplined approach to risk management, reflected in a 24.6% decline in total provisions and impairment losses during the first half of 2026 compared to the same period last year. Together, these results demonstrate our ability to grow the business responsibly while preserving the quality of our balance sheet".

He added: “The Bank's total assets surpassed KD 8 billion, supported by continued lending activity across key segments. This momentum, coupled with a supportive operating environment, provides a solid foundation for further growth. In addition, we continued to expand and diversify our funding sources to support growth and strengthen the Bank funding profile. At the same time, continued project awards across infrastructure and development sectors are expected to drive demand for corporate financing. Combined with healthy liquidity conditions across the banking sector, these developments position us well to continue supporting our customers and capturing sustainable growth opportunities".

Mr. Mahfouz further noted: “Alongside our business growth momentum, we continued to advance our preparations for the transition to Islamic banking, subject to obtaining the required regulatory and shareholder approvals. During the period, work progressed across key areas including governance, products, systems and operational readiness, positioning the Bank well for the next phase of the transformation journey".

Credit Ratings

Gulf Bank’s financial strength and operational resilience were affirmed by leading credit rating agencies. Fitch Ratings assigned a Long-Term Issuer Default Rating (IDR) of ‘A’ with a Stable Outlook, while Moody’s affirmed the Bank’s long-term deposits at ‘A3’ with a Stable Outlook. Capital Intelligence has also affirmed the Long-Term Foreign Currency rating of ‘A+’ with a Stable Outlook, further highlighting the Bank’s stability and sound risk management practices.

Appreciation

Mr. Al-Bahar concluded: “As we look ahead to the second half of 2026, we remain focused on executing our strategic priorities and capitalizing on opportunities arising from Kuwait's ongoing development agenda. Supported by a strong financial position and disciplined approach, we remain well positioned to deliver sustainable long-term value for our shareholders. On behalf of the Board of Directors, I would like to thank our shareholders and clients for their continued confidence, our employees for their dedication, and the regulatory authorities for their continued guidance and support”.

Key Financial indicators for the first Half 2026:

1. First Half 2026 net profit of KD 27.4 million, an increase of 14.1% compared to last year.
2. First Half 2026 operating income of KD 94.3 million, up 2.7% year on year.
3. Net fees and commissions increased 13.3% year on year.
4. Net loans and advances grew by 7.6% year-to-date to reach KD 6.3 billion.
5. Non-performing loan ratio as of 30 June 2026 was 1.2%, with a solid non-performance loan coverage ratio of 312% including total provisions and collaterals.
6. Capital ratios as of 30 June 2026, Tier 1 ratio was 13.8% and Capital Adequacy Ratio (CAR) was 15.8%.