Gulf Bank organizes cleanup campaign on Qaruh Island
The bank consistently works to launch and support initiatives that safeguard natural resources and increase environmental awareness. For Gulf Bank, environmental protection goes beyond volunteer efforts — it's a fundamental part of its corporate and social responsibility. The campaign also reinforces Gulf Bank's active role in supporting both national and global efforts to tackle environmental challenges such as marine pollution, climate change, and biodiversity loss.
The Bank remains committed to embedding sustainability into its daily operations — from reducing resource consumption and advancing digital transformation to limit paper use, to backing environmental initiatives that engage and benefit the wider community. Gulf Bank firmly believes that collaboration and environmental responsibility are essential to shaping a sustainable future. Initiatives like this serve as a powerful reminder that meaningful change starts with a single step, and that each person and organization has a part to play in creating a cleaner, more balanced world.
Gulf Bank divers carry the underwater flag.
The Bank extends its sincere appreciation to all the divers and employee volunteers who played a vital role in the success of this campaign, reaffirming its unwavering commitment to advancing environmental sustainability across Kuwait and beyond. Gulf Bank aims to be Kuwait's leading bank, fostering a diverse and inclusive workplace to deliver exceptional customer service while contributing sustainably to the community. Through its extensive branch network and innovative digital services, the Bank empowers customers to conduct banking transactions conveniently and efficiently, ensuring a seamless experience.
In alignment with Kuwait Vision 2035, 'New Kuwait,' and its commitment to fostering collaborative partnerships, Gulf Bank is dedicated to driving robust sustainability initiatives across environmental, social, and governance (ESG) dimensions. The Bank is committed to implementing strategically selected and diverse sustainability programs both internally and externally.
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Kuwait Times
a day ago
- Kuwait Times
Burgan Bank reports stable financial performance for H1
Bank posts a net income of KD 21 million and operating profit of KD 49 million KUWAIT: Burgan Bank ('Burgan' or 'the Bank') announced its financial results for the first half of 2025 (H1'25), for the period ending June 30, 2025. The results indicate continued operational progress and consistent performance across key business areas. During the first half of the year, the Bank recorded revenues of KD 126 million, representing a 14 percent increase year-on-year (y-o-y) compared to H1'24. The growth was primarily supported by an increase in Net Interest Income, which rose to KD 83 million, marking a 16 percent y-o-y increase. This was driven by stronger Net Interest Margins, which improved to 2.2 percent in H1'25 from 2.1 percent in the same period last year, along with continued expansion of the loan portfolio. Non-interest income also grew by 9 percent y-o-y to KD 43 million in H1'25, largely reflecting the contribution from United Gulf Bank (UGB) starting this quarter. Driven by healthy top-line momentum, Burgan Bank delivered Operating Profit of KD 49 million and Net Income of KD 21 million, reflecting operational stability relative to the same period last year. On the balance sheet front, the Bank demonstrated resilient asset growth. Total assets increased by 14 percent y-o-y, reaching KD 8.7 billion as of June 30, 2025. The loan portfolio stood at KD 4.6 billion, up 4 percent y-o-y. The deposit base also expanded by 16 percent, reaching KD 5.4 billion, reinforcing the Bank's stable and diversified funding base. Burgan Bank also sustained a healthy capital and liquidity position. The Common Equity Tier 1 (CET1) ratio stood at 11.7 percent, while the Capital Adequacy Ratio (CAR) reached 17.4 percent, both comfortably above the regulatory minimum requirements of 10.5 percent and 14.0 percent, respectively. Additionally, the Bank's liquidity remained strong, with a Liquidity Coverage Ratio (LCR) of 225 percent and a Net Stable Funding Ratio (NSFR) of 113 percent, both well in excess of the 100 percent regulatory threshold. Commenting on the H1'25 financial results, Burgan Bank's Chairman, Sheikh Abdullah Nasser Al-Sabah, said: 'The first half of 2025 marks another strong step forward in Burgan Bank's transformation journey. As we navigate a complex regional and global landscape, our performance reflects the Bank's resilience, disciplined execution, prudent risk management, and forward-looking strategy. Backed by a solid financial core and a clear vision, we remain focused on creating sustainable long-term value for our shareholders, empowering our people, and delivering an elevated banking experience for our customers.' He added: 'Through financial management and strategic focus, we continue to make meaningful progress – reinforcing the strength of our core Kuwait operations, sustaining growth across the Group, and deepening our role as a trusted partner to customers and communities. Beyond the numbers, we are committed to building a modern banking model that responds to the needs of tomorrow – driven by innovation, rooted in strong governance, and powered by our most valuable asset: our people.' Sheikh Abdullah Nasser Sabah Al-Ahmad Al-Sabah Chairman Tony Daher, Group Chief Executive Officer Tony Daher, Group Chief Executive Officer at Burgan Bank, said: 'Our first-half performance in 2025 reflects the strength of our financial position, strategic clarity and operational discipline. We achieved solid revenue and asset growth, backed by a robust capital base — demonstrating our agility in a challenging and fast-evolving environment. At the same time, we continue laying the groundwork for the future by accelerating our digital transformation, modernizing our core banking infrastructure, and building scalable platforms to drive long-term innovation and growth.' Adding: 'Our strategy is driven by people: our employees, our customers, and our communities and we are building a culture that fuels ambition and advances our role as a future-ready, human-centric institution.' Inclusion in FTSE4Good Index In June 2025, Burgan Bank was included in the prestigious FTSE4Good Index Series — a recognition that underscores the Bank's steadfast commitment to Environmental, Social, and Governance (ESG) excellence. The FTSE4Good Index Series is a globally respected benchmark that identifies companies demonstrating strong ESG performance and is widely used by institutional investors and asset managers to integrate ESG factors into investment strategies and support the development of responsible investment products and funds. Burgan Bank's inclusion reflects its comprehensive ESG strategy, built on a clear roadmap and robust framework that have enabled measurable progress across its core sustainability pillars. This milestone reinforces the Bank's continued efforts to embed ESG principles across all aspects of its operations — further strengthening its position as a forward-thinking, impact-driven financial institution. Commenting on the Bank's inclusion in the FTSE4Good Index Series, Daher said: 'Being one of only five Kuwaiti organizations recognized by the globally respected FTSE Russell is a proud milestone and a clear testament to our unwavering dedication to sustainability. This achievement reflects our relentless commitment to embedding ESG principles throughout our operations, culture, and stakeholder relationships. It strengthens our resolve to drive sustainable growth that creates real value for our community while building a resilient, inclusive, and environmentally responsible future.' Sustaining momentum During H1'25, Burgan Bank introduced SoftPOS by KNET, an innovative digital payment solution that empowers business owners and entrepreneurs to accept payments directly through an Android smartphone — completely eliminating the need for traditional POS hardware. Designed specifically for mobile and small-scale merchants, SoftPOS offers a cost-effective, secure, and flexible alternative that simplifies transactions and enhances operational agility. This forward-looking solution is a testament to Burgan Bank's ongoing drive to lead in digital transformation, offering smart banking tools that elevate the customer experience while enabling businesses to grow and adapt in an increasingly digital marketplace. Strengthening commitment True to its mission to become an employer of choice and its dedicated strategy for investing in national human capital, Burgan Bank maintained a strong emphasis on its people-first culture throughout the second quarter of the year. The Bank reinforced its commitment to talent development and employee empowerment by celebrating the accomplishments of team members who completed advanced training programs, including executive education at Harvard Business School and certifications from the Kuwait Institute of Banking Studies. Employees also advanced through Burgan Bank's flagship Ro'ya program, which continues to nurture a new generation of in-house leaders. Further demonstrating its inclusive approach, the Bank launched several initiatives under its 'Empower Her' initiative to honor the achievements and contributions of its female workforce. Burgan Bank's commitment to people extended beyond its internal teams, reaching into the broader community to support the development of the next generation of national talent. The Bank sponsored Academy X, Kuwait's largest women-led tech empowerment initiative, in partnership with CODED Academy and Kuwait University. It also participated in several major university career fairs, strengthening its engagement with aspiring professionals and reaffirming its long-standing commitment to youth development and national workforce empowerment. 2024 Visa Award Burgan Bank was recognized with the 2024 Visa Award for 'Best-in-Class Premium Active Cards Growth in Kuwait', reaffirming its position as a leader in premium card innovation. This prestigious accolade highlights the Bank's ongoing efforts to enhance the customer experience through cutting-edge, secure, and lifestyle-oriented payment solutions. The award also reflects the strong synergy between the Bank's Retail Banking and Private Banking divisions, whose collaboration has fueled notable growth in the premium card segment. In addition, the recognition underscores Burgan Bank's long-standing partnership with Visa, through which the Bank has introduced a wide array of tailored card offerings, enriched with exclusive rewards, loyalty benefits, and premium privileges designed to meet the evolving aspirations of its clientele. Sheikh Abdullah Nasser Al-Sabah concluded by saying: 'Our achievements are not a destination, but stepping stones in our continuous journey of success and sustainable growth. We remain committed to serving our customers, our community, and the broader economy as a proactive, responsible corporate citizen — delivering on our promises and driving meaningful, sustainable progress. I would also like to extend my gratitude to all those who have helped us achieve our success and our solid financial standing.' Building on these achievements and the momentum they have created, Burgan Bank is committed to adhering to the same levels of excellence and innovation throughout the remainder of the year, adding value and making change wherever possible in the market and across the society.
Kuwait Times
2 days ago
- Kuwait Times
NBK achieves top-tier ESG ratings across MENA region
Prestigious recognition from leading global agencies KUWAIT: In recognition of its leadership in advancing sustainability and corporate responsibility across the MENA region, National Bank of Kuwait (NBK) has earned high distinctions from leading global ESG rating agencies, underscoring the Bank's unwavering commitment to environmental responsibility, social impact, and robust governance. In its latest assessment, Morningstar Sustainalytics improved NBK's ESG Risk Rating from 27.4 (medium risk) to an impressive 19.4 (low risk), reflecting the Bank's enhanced ability to manage material ESG risks. Concurrently, MSCI upgraded NBK's ESG rating from 'BBB' to 'A'—a notable leap that places the Bank firmly among the top five regional banks in ESG ratings. ESG rating agencies, such as Morningstar Sustainalytics and MSCI, play a critical role in evaluating how institutions manage sustainability-related risks and opportunities. These agencies assess companies across a range of criteria—including environmental impact, social responsibility, and corporate governance—to provide stakeholders and investors with transparent, data-driven insights into organizational performance. High ESG ratings not only promote accountability but also guide capital allocation and investment decisions, reflecting how well highly rated companies are positioned for long-term resilience and responsible growth. Commenting on NBK's achievement, Amir Hanna, Group Chief Communications Officer at NBK, stated: 'NBK's recognition through these prestigious ratings underscores its growing focus on championing sustainable finance and reinforcing sustainability risk management across the region. It also serves as a global testament to its sustained success. The Bank continues to make significant strides in integrating ESG principles into its corporate culture and operational framework, firmly establishing sustainability as a foundational pillar of its strategic agenda. Hanna highlighted that these ratings reflect NBK's continued momentum in implementing its comprehensive ESG strategy, which is anchored in four strategic pillars: Governance for Resilience, Responsible Banking, Capitalizing on our Capabilities, and Investing in our Communities. These pillars serve as a roadmap for integrating sustainability across the Bank's operations and delivering long-term value to shareholders, clients, employees, stakeholders, and the broader society. He further emphasized that NBK's growing commitment to sustainable finance remains a cornerstone of its progress in ESG governance. He also noted that the Bank's vision for sustainability extends well beyond its internal ecosystem, reflecting a steadfast commitment to community development. Across the markets in which it operates, NBK continues to drive meaningful impact, particularly through its focus on education, healthcare, youth empowerment, and expanding access for all segments of society to benefit from its initiatives. Green bonds NBK's landmark issuance of the first Green Bonds by a Kuwaiti institution in 2024, valued at $500 million, stands as a clear testament to the strong confidence investors place in the Bank, as well as the alignment of its sustainability strategy with international standards for transparency and accountability. Through its Green Bond Allocation and Impact Report, NBK provided clear and credible insights into the deployment of proceeds, which were directed toward initiatives such as renewable energy, green buildings, and clean transportation—delivering tangible environmental outcomes including lower carbon emissions and enhanced energy efficiency. Measuring the bank's carbon footprint In addition to financing sustainable projects, NBK has aligned its operations with key international climate frameworks. It became the first bank in Kuwait to sign the Partnership for Carbon Accounting Financials (PCAF), a major step in measuring and disclosing the carbon footprint of its lending and investment portfolios. The Bank also continues to implement the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), embedding climate-related considerations into its governance structures, risk management, and strategic decision-making and has recently published its first TCFD report. In terms of NBK's environmental footprint, a target was set to reduce 25 percent of the Bank's operational emissions by 2025. As of 2024, NBK exceeded this target with a 28.3 percent reduction in operational emissions. A comprehensive framework NBK's commitment to sustainability is further reinforced by the implementation of a comprehensive Environmental and Social Risk Management (ESRM) framework, which integrates ESG considerations into to the Bank's risk management practices. This framework plays a critical role in identifying and mitigating environmental and social risks not only in credit assessments but also in project financing, investment decisions, and client engagement. By embedding ESG principles into its risk management and governance processes, NBK ensures that its activities consistently align with sustainable development objectives and uphold the highest standards of responsible banking. Equity & inclusion On the social and governance fronts, NBK has made significant strides in fostering an inclusive and equitable corporate culture. Through the publication of its Diversity, Equity & Inclusion (DE&I) Statement, NBK reaffirmed its pledge to build a diverse workforce and promote inclusive leadership. NBK continues to lead in championing women's empowerment through targeted leadership programs, most notably NBK RISE, a dedicated initiative designed to support the advancement of women in leadership roles. Moreover, the Bank continues to reinforce its commitment through mentorship opportunities, and inclusive workplace polices, solidifying its position as a regional model for the best-in-class organizational practices. By embedding ESG principles into the heart of its corporate strategy, NBK continues to enhance its resilience, elevate risk management, and unlock new opportunities for sustainable growth. The Bank's progress reflects not just adherence to global standards, but a proactive drive to lead the financial sector's transition toward a more sustainable and inclusive future. Looking ahead, NBK remains committed to advancing its ESG performance through innovation, transparency, and stakeholder engagement. It will continue to invest in sustainable solutions, adopt evolving international frameworks, and champion environmental and social progress across the region. With strong governance foundations, measurable impact, and a forward-looking approach, NBK is not only setting new benchmarks in sustainable finance but also shaping the regional ESG landscape for generations to come. •NBK's sustainability vision extends beyond its internal ecosystem to encompass the broader communities across the markets it serves •The latest ESG ratings underscore the Bank's expanding regional influence in advancing sustainable finance and reinforcing sustainability risk management practices •These recognitions serve as a global endorsement of NBK's significant strides in embedding ESG principles within its corporate culture and day-to-day operations •MSCI upgraded the Bank's rating from 'BBB' to 'A' •Morningstar Sustainalytics revised its risk assessment of NBK from 'Medium' to 'Low Risk'
Kuwait Times
2 days ago
- Kuwait Times
Gulf Bank loan book grew 3.8% in H1 2025 driven by its corporate portfolio
The earnings webcast was held and presented by CFO David Challinor KUWAIT: Gulf Bank held its first half 2025 earnings webcast on Tuesday, July 29, 2025, to present and discuss the Bank's financial performance. The webcast was organized by EFG Hermes and presented by David Challinor, Chief Financial Officer of Gulf Bank. The discussion was moderated by Youssef Dib, from Investor Relations at Gulf Bank. Operating environment David Challinor, Chief Financial Officer of Gulf Bank, commenced the webcast with key updates regarding Gulf Bank's operating environment during first half 2025. Challinor stated: 'The first half of 2025 was marked by a dynamic operating environment and rising geopolitical tensions and oil price fluctuations have added volatility to regional markets and shifted governments priorities. These factors have also influenced market sentiment, creating a more cautious investment landscape. Locally, fiscal policy developments have also played a role in shaping market conditions. The most recent local government debt issuances will accelerate economic activity and enable faster participation by banks in financing national initiatives.' Challinor added, 'Against this backdrop, and despite continued pressure on margins across the sector, our financial performance reflects strong execution and a prudent approach to managing our operations. We continued to maintain a balanced approach between credit expansion and asset quality, ensuring the resilience of our loan book. Our low non-performing loan ratio and high coverage levels underscore the effectiveness of our risk management framework and our ongoing commitment to financial stability.' He added: 'We are also advancing our internal readiness for a potential Islamic Sharia-compliant conversion, subject to being granted with the necessary regulatory and shareholders' approvals. The essential systems, governance frameworks, and talent are currently being explored. We are carefully assessing all operational and market implications to ensure we would be well-prepared subject to obtaining the necessary approvals. In addition, we have recently signed a Memorandum of Understanding with Warba Bank stating the basis of cooperation in assessing a proposed merger between both banks independently, ensuring the best interests of all the Bank's shareholders in line with all regulations. Following that, we announced on July 28, 2025 that we had obtained approval from the Central Bank of Kuwait to engage and appoint a group of specialized consultancy firms with the necessary qualifications and expertise to carry out the feasibility study and due diligence for the potential merger.' Margins In response to questions raised regarding the net interest margins and the trend during Q2 on a sequential basis, David Challinor, Chief Financial Officer of Gulf Bank remarked: 'The margin expanded very strongly by a total of 14 basis points from Q1. Now, even though we saw a fall in the cost of funds during Q2 the market has recently become very competitive which is causing the cost of new deposits to rise and if this dynamic continues to persist, then we could be faced with some margin pressure even in the absence of cuts to benchmark rates.' Operating expenses In terms of operating expenses Challinor mentioned: 'We've seen a 6 percent growth in total operating expenses in H1 25 versus H1 24. I think given the potential Islamic banking conversion coupled with the potential merger, we are likely to have a higher absolute level of operating expenses in the second half than the first. Now, the increase in the cost to income ratio at H1 25 has been primarily by asset repricing on the income side, coupled with an uptick in the other expenses category. However, we did see an improvement in the cost-to-income ratio in the second quarter versus the first as the margin recovered, but I think the full year outlook is that the ratio is set to increase from FY24 levels'. Credit cost When asked about the credit cost and the Bank's asset quality, Challinor said: 'As I've mentioned on previous investor calls, for at least a year now, the vast majority of the Bank's credit costs are coming from the retail book and this trend continued into Q2. However, the Q2 credit costs for retail were the lowest since Q3 2023 which is an encouraging sign. On the corporate side, the book continues to perform exceptionally well with insignificant new NPLs. In terms of the guidance we gave at the beginning of the year we said FY25 credit costs are likely to fall in the 60 to 70 basis point range, which was down significantly from 75 basis points for FY24. For H1 25 we are sitting at 61 basis points, so I think the full year guidance of 60 to 70 continues to be appropriate at this stage.' Loan growth In regard to loan growth, Challinor noted: 'In Q2 we continued to grow the loan book, and the year-to-date growth was 3.8 percent for the first half of 2025. Now, when we compare it to the second half of last year, where we saw a contraction of 1.8 percent, H1 25 has witnessed a strong rebound from H2 24. And this rebound has been driven by our corporate business, which has grown 7.2 percent year to date versus the market growth, to the end of May 25, of 5.1 percent. So, we've gained market share in corporate this year and we also gained market share last year. Now when we look at retail, this continues to be a challenge in the current environment and according to the CBK data the growth to the end of May 2025 was only 1.2 percent which is perhaps indicative of the current higher rates and future rate expectations. In terms of the outlook for total loan growth for the full year 2025, we did guide for around mid-single digit loan growth, and we are currently on track to achieve this.' David Challinor •We maintained a balanced approach between credit expansion and asset quality, ensuring the resilience and integrity of our loan book. •We saw an improvement in the cost-to-income ratio in the second quarter versus the first as margins recovered. •The most recent local government debt issuances will accelerate economic activity and enable faster participation by banks in financing national initiatives.
