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Kuwait Times
a day ago
- Business
- 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.
Bloomberg
2 days ago
- Business
- Bloomberg
Oil & Gas Firm Action Energy Is Said to Eye Rare IPO in Kuwait
Action Energy Co. is planning an initial public offering in Kuwait, potentially setting up the first energy listing in the Gulf state since 2008, according to people familiar with the matter. National Investments Co. and EFG Hermes are advising on the transaction that could come as early as this year, according to the people, who asked not to be named discussing private information. The firm could start initial investor meetings as soon as September, the people said.
Business Recorder
21-07-2025
- Business
- Business Recorder
Indian jeweller Titan to buy large stake in Dubai's Damas
Titan Company will buy a 67% stake in Dubai-based luxury jeweller Damas at an enterprise value of 1.04 billion dirham ($283.2 million), making it one of the largest Indian jewellers in the Middle East. The Tata Group company expects to complete the deal by January 31, 2026 and will have the right to acquire the remaining 33% stake in Damas after December 31, 2029, it said in an exchange filing on Monday. Titan has had a presence in the UAE since October 2020 through its Tanishq jewellery stores. After the deal, Titan, which has about seven stores in the United Arab Emirates, will gain access to Damas' 146 stores across the six GCC countries – UAE, Saudi Arabia, Qatar, Oman, Kuwait and Bahrain. The Middle East is home to a large Indian diaspora, for whom gold is a traditional investment choice. Asia gold: India demand muted despite price correction; buying picks up in China, Singapore Other Indian jewellers in the region include the likes of Kalyan Jewellers, Joy Allukkas and Malabar Gold & Diamonds. Damas, which was previously listed on Nasdaq Dubai, was taken over by Qatar's Mannai Corporation and Egyptian investment bank EFG Hermes in 2012 for $445 million. EFG Hermes sold its entire 19% stake in the jeweller in 2014 to Mannai. Standard Chartered was Titan's advisor for the deal.
Zawya
16-07-2025
- Business
- Zawya
Egypt: EFG Hermes advises on Nesma & Partners' acquisition of AYTB
Arab Finance: EFG Hermes, an EFG Holding Company, has concluded its advisory role to Nesma & Partners on the acquisition of Al Yusr Industrial Contracting Company (AYTB), according to a press release. Through its Investment Banking division, EFG Hermes acted as the sole buyside financial advisor to Nesma & Partners, a leading integrated project solutions company in Saudi Arabia. Saud Altassan, CEO of EFG Hermes KSA, commented: 'This transaction is a strong testament to the strength and depth of Saudi Arabia's industrial sector and reflects our commitment to empowering key national players that are actively shaping the Kingdom's transformation.' 'We are honored to have supported Nesma & Partners on this important milestone and remain focused on driving impactful, value-creating advisory work that aligns with Vision 2030's goals of localization, diversification, and sustainable growth,' added the CEO. On his part, Karim Meleka, Co-Head of Investment Banking at EFG Hermes, said: 'This transaction marks a pivotal moment in Nesma & Partners' evolution and enhances its capacity to deliver high-value services across the whole asset lifecycle.' AYTB, a provider of industrial services in Saudi Arabia, brings over four decades of specialized expertise in operations and maintenance (O&M), manufacturing, and industrial services across critical sectors. It operated in the oil and gas, petrochemicals, and power generation. Following the transaction, AYTB will continue to operate as an independent company within the Nesma & Partners group, maintaining its organizational structure, brand, and operational autonomy. With a strong legacy in contracting, Nesma & Partners launched its business in 1981 as a contracting firm to meet the growing demands in the Kingdom. It has scaled its footprint locally through its contracting and industrial services and globally through its fully-owned subsidiary, Kent, a renowned leader in engineering and project management services. The group is currently delivering end-to-end, reliable, and innovative services across the energy, infrastructure, and building sectors, spanning consulting, engineering, construction, commissioning, operations, and maintenance. It is jointly owned by Nesma Contracting Limited, Alturki Holding, Rawabi Holding, and the Public Investment Fund (PIF). In line with Saudi Arabia's Vision 2030, Nesma & Partners seeks to achieve national transformation through consistent innovation, strategic capacity building, contributing to driving sustainable growth. Since the beginning of 2025, EFG Hermes has advised on five M&A transactions and six equity capital market (ECM) agreements across the region, including Egypt, the UAE, Saudi Arabia, and Oman. © 2020-2023 Arab Finance For Information Technology. All Rights Reserved. Provided by SyndiGate Media Inc. (
bnok24
15-07-2025
- Business
- bnok24
EFG Hermes Advises Nesma & Partners on Strategic Acquisition of Al Yusr Industrial Contracting Company (AYTB)
EFG Hermes, an EFG Holding company and the leading investment bank in the Middle East and North Africa (MENA), announced today that its Investment Banking division has successfully concluded its advisory role to Nesma & Partners, the leading integrated projects solutions company in Saudi Arabia, on the acquisition of Al Yusr Industrial Contracting Company (AYTB), a prominent provider of industrial services in the Kingdom. EFG Hermes acted as the sole buyside financial advisor to Nesma & Partners Saud Altassan, CEO of EFG Hermes KSA, added: 'This transaction is a strong testament to the strength and depth of Saudi Arabia's industrial sector and reflects our commitment to empowering key national players that are actively shaping the Kingdom's transformation. We are honored to have supported Nesma & Partners on this important milestone and remain focused on driving impactful, value-creating advisory work that aligns with Vision 2030's goals of localization, diversification, and sustainable growth Commenting on the transaction, Karim Meleka, Co-Head of Investment Banking at EFG Hermes, said: 'We are proud to have supported Nesma & Partners in executing this strategic acquisition, which reflects our continued commitment to advising regional champions as they grow, transform, and contribute to national development priorities. This transaction marks a pivotal moment in Nesma & Partners' evolution and enhances its capacity to deliver high-value services across the whole asset lifecycle AYTB brings over four decades of specialized expertise in operations and maintenance (O&M), manufacturing, and industrial services across critical sectors such as oil & gas, petrochemicals, and power generation. AYTB will continue to operate as an independent company within the Nesma & Partners group, preserving its organizational structure, brand, and operational autonomy Nesma & Partners group is the leading provider of integrated project solutions in the Kingdom of Saudi Arabia. With a strong legacy in contracting, Nesma & Partners has grown its footprint both locally through its contracting and industrial services and globally through its wholly owned subsidiary, Kent, a renowned leader in engineering and project management services What began in 1981 as a contracting firm to meet the growing demands of an emerging economy in the rapidly developing Kingdom of Saudi Arabia, has evolved today into a diversified group delivering end-to-end, reliable, and innovative services across the energy, infrastructure, and building sectors, spanning consulting, engineering, construction, commissioning, operations, and maintenance Jointly owned by Nesma Contracting Limited, Alturki Holding, Rawabi Holding, and the Public Investment Fund (PIF), the group is deeply committed to Saudi Arabia's Vision 2030, driving national transformation through consistent innovation, strategic capacity building, and a firm dedication to sustainable growth Since the beginning of the year, EFG Hermes has advised on 5 M&A transactions and 6 ECM transactions across the region, including landmark transactions in Egypt, UAE, Saudi Arabia, and Oman, underscoring its leadership in regional markets Google News تابعونا على تابعونا على تطبيق نبض
