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Kuwait Times
07-05-2025
- Business
- Kuwait Times
Gulf Bank holds Q1 2025 earnings webcast
KUWAIT: Gulf Bank held its first quarter 2025 earnings webcast on Monday (May 5, 2025) to present and discuss the Bank's financial performance. The webcast was organized by EFG Hermes and presented by Waleed Khaled Mandani, Acting Chief Executive Officer of Gulf Bank, and David Challinor, Chief Financial Officer of Gulf Bank. The discussion was moderated by Dalal Al-Dousari, Head of Investor Relations at Gulf Bank. Operating environment Waleed Khaled Mandani, Acting Chief Executive Officer of Gulf Bank, commenced the webcast with key updates regarding Gulf Bank's operating environment during first quarter 2025. Mandani stated: 'Gulf Bank's financial performance in the first quarter of 2025 reflects the ongoing challenges facing the financial sector. Despite the headwinds, Gulf Bank's underlying fundamentals remain strong, supported by a resilient balance sheet, sound risk management, and a clear strategic direction.' Mandani added, 'As we reflect on our performance in the first quarter of 2025, we remain focused on delivering long-term value, despite the pressures of the macroeconomic landscape. While our financial performance was impacted by sector-wide factors, we made meaningful progress on several strategic fronts that reinforce the Bank's underlying strength and long-term direction.' He added: 'As we progress through 2025, Gulf Bank remains focused on executing its strategic priorities with discipline and resilience. In line with our long-term vision for sustainable growth, we have initiated the groundwork for the potential conversion to a Sharia-compliant institution (subject to obtaining relevant regulatory approvals), an important step aligned with our long-term vision for sustainable growth.' Gulf Bank Chief Financial Officer David Challinor Dalal Al-Dousari Margins When questioned about on the drivers of the decline in net interest margins and the outlook for Q2-2025, David Challinor, Chief Financial Officer of Gulf Bank remarked: 'In Q1 we did see downward pressure in the Bank's net interest margin. There's obviously a lot of dynamics at play but I'll start with the main driver which was the drop in income yields. Now, these were significantly impacted by asset repricing in both the Corporate and Treasury books due to the rate cuts we saw throughout the September to December period. Benchmark rates fell 25 basis points for KD and 100 basis points for USD. And over the past year we've been growing in corporate, as opposed to retail, so the asset mix has moved away from the higher margin retail business due to muted market growth in retail.' He added: 'Going into Q2, and as long as there's no reduction in benchmark rates, we'd expect an increase in net interest margin which will obviously have a positive impact on top line income and work to restore overall profitability.' Operating expenses In terms of operating expenses Challinor mentioned: 'Total operating expenses were up 7 percent or 1.5 million year-on-year. And the biggest driver of the increase was in the 'other expense' category. However, we managed to reduce costs by 2.1 million or 8 percent when compared to Q4 2024. And that was after booking various consulting costs relating to the potential merger with Boubyan, which was cancelled early in the quarter.' He added: 'Now clearly the cost-to-income ratio has stepped up in Q1, but this was primarily due to the drop in margin. And as I said earlier, I'd expect the margin to increase in Q2 so combined with relatively stable costs we should expect an improvement in the cost to income ratio from current levels.' Credit cost When asked about the credit cost and the outlook for the remainder of the year, Challinor said: 'The credit costs for Q1 came in at 10.1 million which represented a year-on-year decrease of 1.3 million or 11 percent. Now I've said several times before that the retail credit costs have been elevated, and we saw a continuation of this during Q1, as almost all the credit costs in Q1 related to retail. In terms of corporate, we're in excellent shape after the significant cleanup of legacy accounts we undertook in 2024 and we're very comfortable with the overall asset quality of our corporate book.' He added: 'In terms of the outlook, our full year 2025 guidance for credit costs was in the 60 to 70 basis point range and Q1 came in around the top end of that range. So, even though we think that retail credit costs could be elevated for some time, we still think the full year guidance is appropriate.' Loan growth When questioned about the loan growth during the first quarter2025, Challinor noted: 'We had loan growth in Q1 of 2.8 percent year to date or almost 160 million which was a strong start to the year. Although, most of the growth was booked late in the quarter which impacted margin. Like we've seen in recent quarters, all the growth was in the corporate space. And we saw more local deals being booked, which is a focus area for the Bank.' He added: 'According to the CBK data the total system grew 1.4 percent for the first quarter versus our growth of 2.8 percent. So in Q1 we've managed to double the system growth. Now, in terms of the outlook for the full year 2025 we'd guided mid-single digit loan growth, and we continue to see that as being achievable but with the potential scope to exceed it.'
Zawya
01-05-2025
- Business
- Zawya
Gulf Bank records KD 9.4mln in net profit for the first quarter of 2025
Ahmad Mohammad Al-Bahar: We have begun the groundwork to the potential conversion of the Bank into a Sharia-compliant institution in alignment with our long-term vision for sustainable growth. Gulf Bank's financial performance in the first quarter of 2025 reflects the ongoing challenges facing the financial sector including a declining interest rate environment. Recent government reforms present a promising outlook for national development. The proposed Real Estate Financing Law is designed to ease existing difficulties in the public housing segment and open a new revenue and growth stream for local banks. Waleed Khaled Mandani: While our financial performance was impacted by sector-wide factors, we made meaningful progress on several strategic fronts. Gulf Bank successfully closed its debut international syndicated loan transaction, raising US$650 million through a senior unsecured term facility. We continued to invest in the long-term strength of our leadership team by advancing experienced professionals into key executive roles. We remain committed to supporting our clients, driving operational excellence, and executing on our strategic initiatives. Kuwait: Gulf Bank K.S.C.P. announced its financial results for the first three months ending 31 March 2025. The Bank reported a net profit of KD 9.4 million, a decline of KD 3.5 million or 27% compared to 2024 first three months net profit of KD 12.9 million. In addition, Gulf Bank recorded an operating income of KD 44.0 million for the first three months of 2025, representing a decline of 9% compared to the same period of last year. Moreover, operating profit before provisions and impairments was KD 20.9 million, representing a decline of 22% compared to the first quarter of 2024. Financial Performance The decline in net profit for the first quarter of 2025 is attributed to the decline in net interest income of KD 3.3 million or 9%, coupled with a decline in non-interest income of KD 1.0 million or 10%, compared to the same period of prior year, respectively. In addition, operating expense has increased by KD 1.5 or 7%, when compared to first quarter of 2024. However, this was offset by a decline in the total provisions which reached KD 11.0 million in the first quarter of 2025, down by KD 2.1 million or 16% when compared to the same period of last year. As for asset quality, the non-performing loans (NPL) ratio was 1.5% as of 31 March 2025, compared to the prior year level of 1.2%. Additionally, the Bank continues to have significant non-performing loans coverage ratio of 305% including total provisions and collaterals. Total credit provisions as of 31 March 2025 reached KD 277 million whereas IFRS 9 accounting requirements (i.e., ECL or expected credit losses) were KD 183 million. As a result, the Bank has a healthy excess provision level of KD 94 million, above and beyond what is required by the IFRS 9 accounting requirements. Compared to 31 December 2024, total assets increased by 1% to KD 7.5 billion, net loans and advances increased by 3% to KD 5.6 billion, while total deposits stood at KD 5.5 billion and total Shareholders' equity reached KD 808 million. The Bank's regulatory Tier 1 ratio of 14.9% was 2.9% above the regulatory minimum of 12% and the Capital Adequacy Ratio (CAR) of 17.0% was 3.0% above the regulatory minimum of 14%. On the 22nd of March 2025, Gulf Bank held its Annual General Assembly Meeting, where shareholders approved the distribution of a cash dividend of 10 fils per share for the year 2024, representing a 63% cash payout ratio per share, in addition to a distribution of 5% bonus shares. Growth Foundations Commenting on the financial results for the first quarter of 2025, Gulf Bank Chairman Mr. Ahmad Mohammad Al-Bahar stated: 'Gulf Bank's financial performance in the first quarter of 2025 reflects the ongoing challenges facing the financial sector. Despite ongoing headwinds, Gulf Bank's underlying fundamentals remain strong, supported by a resilient balance sheet, sound risk management, and a clear strategic direction. While net profit of KD 9.4 million and operating income of KD 44.0 million in the first quarter of 2025 were lower than the same period last year, this was driven by systemic factors, including a declining interest rate environment, which continued to exert pressure on net interest margins and overall profitability." He continued: "The global economic landscape remains volatile. Geopolitical tensions, newly imposed tariffs, and ongoing trade restrictions are weighing on market confidence. These recent developments may affect government capital spending, particularly on development projects, which could slow credit demand and investment momentum." "Locally, recent government reforms present a promising outlook for national development. The approval of the long-anticipated Public Liquidity and Finance Law, with a borrowing ceiling of KD 30 billion, will enable the government to finance strategic infrastructure initiatives and support efforts to diversify revenue sources beyond the oil sector. This measure is expected to stimulate overall activity and create new opportunities for growth within the banking industry. Furthermore, the proposed Real Estate Financing Law is designed to ease existing difficulties in the public housing segment by permitting commercial banks to provide housing finance solutions, thereby opening a new revenue and growth stream for local banks. These legislative, among other advancements, align with Kuwait's Vision 2035 and are expected to boost investor confidence and support long-term prosperity." Strategic progress Commenting on the operational performance of Gulf Bank, Acting Chief Executive Officer Mr. Waleed Khaled Mandani said: 'As we reflect on our performance in the first quarter of 2025, we remain focused on delivering long-term value, amidst the pressures of the macroeconomic landscape. While our financial performance was impacted by sector-wide factors, we made meaningful progress on several strategic fronts that reinforce the Bank's underlying strength and long-term direction. During the quarter, Gulf Bank successfully closed its debut international syndicated loan transaction, raising US$650 million through a senior unsecured term facility. The transaction, which was significantly oversubscribed, attracted strong participation from both regional and global institutions, underscoring investor confidence in the Bank's credit profile and strategic vision. This diversifies our funding base, enhances financial flexibility, and positions us to support future growth opportunities more effectively. In parallel, we continued to invest in our most valuable asset, our people. During the quarter we continued to invest in the long-term strength of our leadership team by advancing experienced professionals into key executive roles. This reflects our commitment to developing national talent and building leadership from within. By nurturing internal capabilities, we promote continuity, reinforce our culture, and enhance our ability to navigate a dynamic and evolving market landscape. Looking ahead, we remain committed to supporting our clients, driving operational excellence, and executing on our strategic initiatives, as we navigate the evolving economic landscape with resilience and purpose.' 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 rated long-term deposits at 'A3' with a Positive Outlook. Capital Intelligence affirmed a 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 his remarks by saying: 'As we progress through 2025, Gulf Bank remains focused on executing its strategic priorities with discipline and resilience. In line with our long-term vision for sustainable growth, we have initiated the groundwork for the potential conversion to a Sharia-compliant institution (subject to regulatory approvals), an important step aligned with our long-term vision for sustainable growth. On behalf of the Board of Directors, I extend our sincere appreciation to our shareholders for their continued trust, our employees for their dedication, and the Regulatory Authorities for their valued support. Most importantly, we thank our customers for their loyalty and reaffirm our commitment to delivering a best-in-class banking experience.' Key Financial indicators for the first quarter 2025: First Quarter 2025 net profit of KD 9.4 million. First Quarter 2025 operating income of KD 44.0 million. Net loans and advances grew by 3% year-to-date to reach KD 5.6 billion. Non-performing loan ratio for the First Quarter 2025 was 1.5%, with a solid non-performance loan coverage ratio of 305% including total provisions and collaterals. Capital ratios as of 31 March 2025, Tier 1 ratio was 14.9% and Capital Adequacy Ratio (CAR) was 17.0%.
Zawya
23-03-2025
- Business
- Zawya
Gulf Bank approves the distribution of 10% cash dividends and 5% bonus shares for 2024
Ahmad Mohammad Al-Bahar: Gulf Bank continues to strengthen its position as a leading financial institution in Kuwait despite challenging and volatile markets. We are committed to maintaining the Bank's strong financial position and delivering consistent returns to our shareholders. We will continue the feasibility and procedures of converting Gulf Bank's into a Sharia-compliant Bank with the aim to achieve sustainable growth for all stakeholders. We are confident that our strategic initiatives supported by strong Governance and sound Risk Management will ensure our continued success. Waleed Khaled Mandani: 2024 was a year of notable progress for Gulf Bank marking a net profit of KD 60.2 million. We continued to focus on enhancing and personalizing our customer experience while anticipating further progress this year. Total assets increased by 4% to KD 7.5 billion and shareholder equity by 2.1% reaching KD 834 million. Capital Adequacy Ratio stood at 17.3%, well above the regulatory minimums and our NPL ratio stood at 1.3%, one of the lowest in the sector. Gulf Bank held its Ordinary General Assembly Meeting yesterday (Saturday) with a quorum of 77.3% , approving a cash dividend of 10% per share and bonus shares of 5% for the financial year ended 31 December 2024. In his statement to the shareholders, Gulf Bank's Chairman, Mr. Ahmad Mohammed Al-Bahar said: "Gulf Bank has continued to strengthen its position as a leading financial institution in Kuwait, delivering many achievements at multiple levels and indicators, despite market challenges and volatility.' He added: " "We are eager to continue advancing the growth of the bank's performance as one of our strategic priorities, while enhancing service quality and enriching the customer experience. At the same time, we remain dedicated to maintaining the bank's strong financial position and consistently delivering meaningful returns to our shareholders." 'As we move forward into 2025, we will continue to pursue our strategic initiatives, mainly the feasibility and procedures of converting Gulf Bank's conversion into a Sharia-compliant Bank, with the aim to achieve sustainable growth for all stakeholders. We are confident that our strategic initiatives, supported by strong governance and sound risk management, will ensure our continued success. Financial Growth Gulf Bank's Acting Chief Executive Officer, Mr. Waleed Khaled Mandani, stated that:' 2024 was a year of notable progress for Gulf Bank, highlighting the Bank's key financial indicators during the past year.' He stated: ' the Bank achieved a net profit of KD 60.2 million last year, while the operating income increased by 5% to KD 199 million and operating profit by 3% to KD 107 million compared to last year.' He added: 'In comparison to 31 December 2023, Gulf Bank's total assets increased by 4.% to reach KD 7.5 billion, with net loans and advances rising by 5.2% to KD 5.5 billion. Additionally, total deposits grew by 4.3% to reach KD 5.6 billion, while shareholders' equity increased by 2.1% to reach KD 834 million for the year ended 2024.' He stated that the Bank's capital remained robust, as the Capital Adequacy Ratio stood at 17.3% compared to the regulatory minimum of 14%; the NPL ratio was one of the lowest in the sector at 1.3% ,with a coverage ratio of 340%, including total provisions and collateral. On the other hand, Mr. Mandani stated: "In 2024, Gulf Bank continued to focus on its key objective of enhancing and personalizing customer experience post the completion of Phase II of the core banking system upgrade, and we are anticipating further progress this year. Cadre 1 Board of Directors Elections The Ordinary General Assembly of Gulf Bank elected the Board of Directors for the next three years, consisting of Mr. Ahmad Al-Bahar, Mr. Ali Behbehani, Mr. Omar Al-Essa, Mr. Abdullah Al-Sayer, Dr. Fawaz Al-Awadhi, Mr. Muath Al-Rayes, and Ms. Dalal Al-Rayes. Additionally, it elected the independent members: Dr. Abdulrahman Al-Taweel, Mr. Talal Al-Sayegh, Mr. Majed Al-Ajeel, and Mr. Eid Al-Rasheedi. Cadre 2 Dividends Payment Date on April 15th The Bank's shareholders registered in the company's records as at the end of the record date, set on April 10th, are entitled to cash dividends and bonus shares, whereby the payment date is set on April 15th. Cadre 3 Among Top 100 listed Companies in the region Forbes magazine ranked Gulf Bank among the top 100 listed companies in the region, and The Banker magazine named it one of the top 100 Arab Banks for 2024. Gulf Bank remains 'A' rated bank by the three leading credit rating agencies, with total assets of KD 7.5 billion as at December 2024. Cadre 4 Eco-friendly Branches The Bank continues to implement its ambitious plan to transform its branch network across various parts of Kuwait into environmentally friendly branches with a new identity. Last year, the new branch in Sabah Al-Ahmad Residential City was opened, and six branches were renovated and reopened. These branches are equipped with energy-saving technologies and sustainable materials, reflecting our commitment to environmental responsibility. By prioritizing innovation and customer convenience, the new branch design enhances the client experience while contributing to a greener future. Cadre 5 Invest GB Commenced Operations After receiving regulatory approvals, InvestGB, the fulling owned investment arm of Gulf Bank, is now successfully positioned as one of the leading firms in Kuwait's investment sector within its first year. Through several strategic partnerships with prominent global companies, InvestGB is able to offer its clients exceptional services and unique investment opportunities. Cadre 6 13 Global and Regional Awards Gulf Bank received 13 global and regional awards during 2024 in recognition of its personalized customer service excellence, as well as its distinguished role in corporate social responsibility and in the empowerment of women and youth. Cadre 7 A New Brand Identity for Private Banking Gulf Bank has introduced a new brand identity for its Private Banking Services, rooted in three core principles: long-term wealth growth, asset protection, and seamless wealth transfer. This initiative redefines the private banking experience, ensuring that clients receive personalized, comprehensive financial solutions aligned with their aspirations. Cadre 8 Special thanks to Bader Al-Kharafi Mr. Ahmad Mohammad Al-Bahar expressed his appreciation and gratitude to Gulf Bank's former Chairman of the Board, Mr. Bader Nasser Al-Kharafi, for his valuable efforts and wise leadership throughout his tenure, wishing him success in his future endeavors. He also extended his appreciation to all members of the Board, the Executive Management and Gulf Bank employees for their commitment and contribution to the bank's success. Cadre 9 Acknowledgment and Appreciation Mr. Ahmad Al-Bahar stated: "On behalf of the Board of Directors, I would like to express my appreciation to the Central Bank of Kuwait, the Capital Markets Authority and the Ministry of Commerce and Industry for their relentless efforts in supporting and promoting the Kuwaiti banking sector. My appreciation goes out as well to our esteemed customers, partners, and shareholders, for their trust and support.
Zawya
17-02-2025
- Business
- Zawya
Gulf Bank holds its year-end 2024 earnings webcast
Waleed Khaled Mandani: Kuwait's financial system continues to demonstrate resilience, supported by stable oil prices, ambitious government initiatives toward economic diversification, and a commitment to fiscal reform. Gulf Bank plays a key role in supporting Kuwait's economic development and Vision 2035 aspirations. A key focus in 2025, will be exploring the feasibility of transforming Gulf Bank into a Sharia-compliant institution. David Challinor: The loan growth this year has been dominated by our corporate book which grew almost 10%, a significant turnaround from 2023. Our stage 2 loans further dropped to 2.8%, which is probably the lowest in the Kuwaiti banking system, and certainly the lowest Gulf Bank has seen since the introduction of IFRS 9. We will continue our cost optimization journey and are targeting a fall in the full year cost to income ratio. Kuwait: Gulf Bank held its year-end 2024 earnings webcast on Thursday 13th February 2025, to present and discuss the Bank's financial performance. The webcast was organized by EFG Hermes and presented by Waleed Mandani, Acting Chief Executive Officer of Gulf Bank, and David Challinor, Chief Financial Officer of Gulf Bank. The discussion was moderated by Dalal AlDousari, Head of Investor Relations at Gulf Bank. Operating Environment Mr. Waleed Khaled Mandani, Acting Chief Executive Officer of Gulf Bank, commenced the webcast with key updates regarding Gulf Bank's operating environment during the year 2024. Mandani stated: 'The global economic landscape in 2024 experienced considerable fluctuations. Central banks worldwide started to recalibrate monetary policies to address shifting financial conditions. However, Kuwait's financial system continues to demonstrate resilience, supported by stable oil prices, ambitious government initiatives toward economic diversification, and a commitment to fiscal reform.' Mr. Mandani added 'Against this backdrop, Gulf Bank has played a key role in supporting Kuwait's economic development and Vision 2035 aspirations. Operationally, we have achieved remarkable progress in enhancing efficiency and elevating customer experiences. A key milestone was the successful completion of Phase II of our core banking system. Our digital transformation efforts have been further reinforced by the launch of a new mobile banking application, designed to provide a secure and intuitive platform that caters to the diverse needs of our clients. In parallel, we have made meaningful progress in improving operational efficiency, which will remain integral to our strategic approach.' He added: 'Looking ahead to 2025, we remain steadfast in pursuing our strategic goals. A key focus will be the continued exploration of the feasibility of transforming Gulf Bank into a Sharia-compliant institution. Simultaneously, we will work to expand our product offerings, enhance our competitive position, and maintain our robust financial performance.' Loan Growth When questioned about the loan growth during the year 2024, Mr. Challinor noted: 'Gross loans and advances have grown 4% this year. And the growth this year has been dominated by our corporate book which grew almost 10%, a significant turnaround from 2023 where we saw a degrowth in corporate of 1%. In terms of the market growth, we saw corporate grow by around 9.3%, so we've outperformed the market.' He added: 'On the retail side, the market has been slow which is a function of the higher rate environment as the retail loans are fixed rate. Looking forward into 2025, I'd expect full year loan growth to be around mid-single digits.' Operating Expenses In terms of cost to income ratio Mr. Challinor mentioned: 'We guided at the beginning of the year that we would look to move this lower in 2024. And when you look at this ratio for the first 9 months of the year, it was in line when compared to 2023. But in Q4 we did see a step up in the quarterly costs, which meant that for the full year 2024, our cost to income ratio exceeded where it was in 2023.' He added: 'Now, looking forward into 2025 we will continue our cost optimization journey and are targeting a fall in the full year cost to income ratio, but as I said we may experience elevated levels in the other expense category for a while.' Margins Regarding margins and the impact from the recent rate cut, Mr. Challinor remarked: 'Clearly the biggest driver of margin going forward will be the timing and size of rate cuts. We've disclosed in our financial statements the impact of a 25-basis point change to our net interest income. And for our KD book this is 1.5 million and for our USD book its 1.1 million. Which gives a total of 2.6 million KD for every 25 points. And this also assumes a parallel shift across both sides of the balance sheet. So, in 2025 we will likely see further margin reductions driven by benchmark rate cuts, but to provide guidance on the quantum of such reductions, given the uncertainties around size and timing, is very difficult.' Credit Cost When asked about the credit cost and reasons behind the pickup this year, Mr. Challinor noted: 'In 2024 there's been a lot of dynamics and complexity at play when we look at the banks credit costs. However, just to recap they were higher by 13.3 million or 46% than in 2023. And our full year cost of risk was 75 basis points which exceeded the top end of the guidance we gave at the start of the year of 70.' He added: 'However, our stage 2 percentage went from 4.6% at the end of 2023 to 2.8% at the end of 2024. And not only is this the lowest the bank has seen since the introduction of IFRS 9, but it's the lowest of any bank in Kuwait. Looking forward into 2025 I think credit costs may be lower than what we saw in 2024. I'd expect the corporate book to perform better given many of the legacy accounts are now behind us, however retail may remain elevated for some time. So, on balance I think an annual credit cost in the 60-70 basis point range could be achievable.' Conversion to a Sharia compliance Mr. Challinor commented on a question regarding the potential conversion to Islamic banking by stating: 'Currently, the feasibility study is underway. Upon completion, the findings will be presented to the Board of Directors and then to the Central Bank of Kuwait. Ultimately, the decision will be brought to our shareholders at the AGM for their approval.'
Zawya
11-02-2025
- Business
- Zawya
Gulf Bank reports a net profit of KD 60.2mln for the full year 2024
Ahmad Mohammad Al-Bahar: 2024 was a year of notable progress for Gulf Bank, defined by our ability to deliver on our strategic objectives. Our prudent risk management and operational excellence have solidified our position as a trusted financial partner and a pillar of Kuwait's financial ecosystem. We have resolved several legacy-loan challenges, substantially improving our asset quality. We will continue to pursue with our intention to explore the feasibility of transforming Gulf Bank into a Sharia-compliant Bank, aiming to achieve sustainable growth to our stakeholders. Waleed Khaled Mandani: We are proud of the significant progress we've made in enhancing our operational capabilities and delivering seamless customer experiences. A remarkable success was achieved in reducing costs and optimizing efficiencies leading to streamlined processes and sustainable results. 2024 witnessed the commencement of operations at our fully owned investment arm, 'Invest GB', with a capital of KD 10 million. The reopening of our newly designed eco-friendly branches across Kuwait enhances the client experience while contributing to a greener future. Kuwait City – Gulf Bank K.S.C.P. ('Bank') announced its financial results for the full year ending 31 December 2024. The Bank reported a net profit of KD 60.2 million, reflecting a decline of KD 11.0 million or 15.5% compared to a net profit of KD 71.2 million for the same period in 2023. Earnings per share for the year were 16 fils, and the Board of Directors is recommending a cash dividend distribution of 10 fils per share, representing a 63% cash payout ratio. In addition, a 5% bonus share distribution is proposed, subject to shareholder approval at the Annual General Meeting scheduled for March 2025. Furthermore, Gulf Bank recorded an operating income of KD 199.3 million for the full year 2024, marking an increase of 4.8% compared to the previous year. Operating profit also saw a rise, reaching KD 106.7 million, reflecting a growth of 3.2% compared to 2023. The decline in net profit for the full year of 2024 is primarily attributed to an increase in total provisions and impairments, which increased by KD 14.9 million for the full year compared to the same period last year. Nevertheless, in the fourth quarter the total provision cost has significantly decreased compared to both the previous quarters of 2024 and the same period last year. Now looking at the financial performance of the fourth quarter of 2024, the Bank reported a net profit of KD 20.0 million, an increase of 14.8% over the fourth quarter of 2023. Operating income for the mentioned period was KD 53.3 million, an increase of 6.3% compared to the same period of last year. The Bank's prudent risk management approach has effectively mitigated risks and maintained the quality of its loan portfolio. As of 31 December 2024, the Bank's non-performing loans (NPL) ratio stood at 1.3%, compared to 1.2% at the end of the previous year. Additionally, the Bank continues to maintain a robust NPL coverage ratio of 340%, including total provisions and collateral. As of 31 December 2024, total credit provisions reached KD 270 million, whereas IFRS 9 accounting requirements (i.e., ECL or expected credit losses) were KD 177 million. This results in a substantial excess provision level of KD 94 million, over and above what is mandated by IFRS 9 accounting requirements. In comparison to 31 December 2023, Gulf Bank's total assets increased by 4.3% to reach KD 7.5 billion, with net loans and advances rising by 5.2% to KD 5.5 billion. Additionally, total deposits grew by 4.3% to reach KD 5.6 billion, while shareholders' equity increased by 2.1% to reach KD 834 million for the year ended 2024. The Bank's capital position remains robust, supported by strong internal capital generation. As of 31 December 2024, the Bank's regulatory Tier 1 capital ratio stood at 15.2%, exceeding the regulatory minimum of 12% by 3.2%. Additionally, the Capital Adequacy Ratio (CAR) was 17.3%, surpassing the regulatory minimum of 14% by 3.3%. Robust Results Commenting on the financial results, Gulf Bank Chairman Mr. Ahmad Mohammad Al-Bahar stated: '2024 was a year of notable progress for Gulf Bank, defined by our ability to deliver on our strategic objectives while navigating a complex economic landscape. Despite global uncertainties and local challenges, our prudent risk management, operational excellence, and commitment to innovation have solidified our position as a trusted financial partner and a pillar of Kuwait's financial ecosystem.' He added: 'I am pleased with our performance for the year 2024. We have addressed and resolved several legacy-loan challenges, which has substantially improved our asset quality allowing capacity for sustainable growth and increased stakeholder value.' Operational Achievements Gulf Bank's operational advancements in 2024 were significant. The completion of Phase II of its core banking system upgrade has positioned the Bank to offer more agile, customer-focused services, setting a benchmark in operational efficiency. This system implementation has improved internal processes and elevated the customer experience by enabling faster and more reliable service delivery. The launch of Gulf Bank's enhanced mobile banking application is another highlight of the year. With a state-of-the-art interface and expanded features, the app empowers customers to manage their finances securely and conveniently, reflecting the Bank's dedication to innovation and customer satisfaction. In private banking, Gulf Bank introduced a refined identity rooted in three core principles: long-term wealth growth, asset protection, and seamless wealth transfer. This initiative redefines the private banking experience, ensuring that clients receive personalized, comprehensive financial solutions aligned with their aspirations. Gulf Bank also reinforced its commitment to SMEs by enhancing its exclusive digital portal, which offers a wide array of services, including credit facilities, salary transfers, and payment gateways. Through a partnership with Omnifintec, the Bank further expanded its suite of financial solutions tailored to the unique needs of SMEs, reinforcing its role as a key enabler of Kuwait's economic development. Commenting on the operational performance of Gulf Bank, Acting Chief Executive Officer Mr. Waleed Khaled Mandani said: 'Reflecting on 2024, we are proud of the significant progress we've made in enhancing our operational capabilities and delivering seamless customer experiences. This year, Gulf Bank achieved several key milestones, marked by the completion of Phase II of our core banking system upgrade and the commencement of operations at Invest GB, our fully owned investment arm, with a capital of KD 10 million. Additionally, we have achieved a meaningful success in reducing costs and optimizing efficiencies which has contributed to streamlining processes and delivering sustainable results. By Embracing a mindset of continuous optimization, we are dedicated to making this principle a lasting part of our organizational culture. Furthermore, the Bank continues to implement its ambitious plan to transform its branch network across various parts of Kuwait into environmentally friendly branches with a new identity. Last year, the new branch in Sabah Al-Ahmad Residential City was opened, and six branches were renovated and reopened. These branches are equipped with energy-saving technologies and sustainable materials, reflecting our commitment to environmental responsibility. By prioritizing innovation and customer convenience, the new branch design enhances the client experience while contributing to a greener future.' Credit Ratings and Recognitions In 2024, 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 rated long-term deposits at 'A3' with a Positive Outlook. Capital Intelligence affirmed a Long-Term Foreign Currency rating of 'A+' with a Stable Outlook, further highlighting the Bank's stability and sound risk management practices. Gulf Bank's achievements were also celebrated on the global stage, with the Bank receiving 13 regional and international awards. Notably, it was recognized among the 'Top 100 Listed Companies in the Region' by Forbes and as one of the 'Best 100 Arab Banks' by The Banker. Commitment to Sustainability Throught the year 2024, Gulf Bank made significant strides in reducing its environmental footprint, promoting diversity and inclusion, and enhancing social responsibility. Additionally, Gulf Bank has revealed its ambitious environmental, social, and governance (ESG) strategy for the period 2024-2030, outlining a clear roadmap and key performance indicators for the next six years. The strategy focuses on implementing sustainability standards and enhancing corporate governance practices that reflect the bank's core values and guide every aspect of its banking operations. Appreciation Mr. Al-Bahar concluded his remarks by saying: 'As we embark on 2025, our strategic initiatives, coupled with our commitment to governance, operational excellence, and innovation, position Gulf Bank for a prosperous future. We will continue to pursue with our intention to explore the feasibility of transforming Gulf Bank into a Sharia-compliant Bank, aiming to achieve sustainable growth to our stakeholders. On behalf of the Board of Directors, I would like to thank our shareholders for their ongoing trust, and our employees for their commitment and dedication. I would also like to thank the Regulatory Authorities for their continuous support. Finally, I want to thank our customers for their loyalty and reiterate our commitment to offering them the best banking experience.' Key Financial indicators for the year 2024: 2024 net profit of KD 60.2 million. 2024 operating income of KD 199.3 million, an increase of 4.8% compared to the year 2023. Operating profit reached KD 106.7 million, an increase of 3.2% compared to the year 2023. Net loans and advances grew by 5.2% year-to-date to reach KD 5.5 billion. Non-performing loan ratio as of 31 December 2024 is 1.3%, with a strong non-performance loan coverage ratio of 340%. Capital ratios as of 31 December 2024, Tier 1 ratio was 15.2% and Capital Adequacy Ratio (CAR) was 17.3%.
