Latest news with #WaleedMandani
Zawya
07-05-2025
- Business
- Zawya
Gulf Bank holds its first quarter 2025 earnings webcast
Waleed Khaled Mandani: Despite the headwinds, Gulf Bank's underlying fundamentals remain strong, supported by a resilient balance sheet, sound risk management, and a clear strategic direction. As we progress through 2025, Gulf Bank remains focused on executing its strategic priorities with discipline and resilience. We have initiated the groundwork for the potential conversion to a Sharia-compliant institution, subject to obtaining relevant regulatory approvals. David Challinor: We managed to reduce operating costs by 2.1 million or 8% when compared to Q4 2024. We had loan growth in Q1 of 2.8% year to date or almost 160 million which was a strong start to the year. The credit costs for the corporate loan book is in excellent shape and we are very comfortable with its overall asset quality. Kuwait: Gulf Bank held its first quarter 2025 earnings webcast on Monday 5th May 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 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 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' Mr. 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.' Margins When questioned about on the drivers of the decline in net interest margins and the outlook for Q2-2025, Mr. 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 Mr. Challinor mentioned: 'Total operating expenses were up 7% 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% 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, Mr. 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%. 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 quarter 2025, Mr. Challinor noted: 'We had loan growth in Q1 of 2.8% 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% for the first quarter versus our growth of 2.8%. 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
25-02-2025
- Business
- Zawya
Kuwait's Gulf Bank secures $650mln debut senior unsecured syndicated term loan facility
KUWAIT CITY: Gulf Bank K.S.C.P. ('Gulf Bank' or the 'Borrower'), one of the leading conventional banks in Kuwait, has successfully signed a US$ 650 Million Senior Unsecured Syndicated Term Loan Facility (the 'Facility'). Emirates NBD Capital Limited, the investment banking arm of Emirates NBD, and Standard Chartered served as Global Coordinators, Mandated Lead Arrangers and Bookrunner ('MLABs'), acting both individually and collectively in these roles. The Facility is Gulf Bank's debut transaction in the international syndicated loan markets and opens up a sustainable and diversified route of financing through access to the international and regional syndicated loan markets. The proceeds of the Facility will be utilized to fund Gulf Bank's general corporate purposes. The Facility was anchored by the MLABs and was launched to a select group of international and regional investors in general syndication. Waleed Mandani, Gulf Bank's Acting Chief Executive Officer, commented: 'The transaction received strong interest from both global and regional banks, allowing Gulf Bank to expand its funding sources and diversify its investor base. The Facility was significantly oversubscribed, allowing Gulf Bank to exercise the green-shoe option to upsize the Facility to US$ 650 Million from the original size at launch of US$ 500 Million, post scale-back. The success of this debut transaction affirms Gulf Bank's reputation as a regional banking leader with good domestic franchise, high credit worthiness and impeccable financial strength.' Mandani Added: 'Emirates NBD and Standard Chartered have demonstrated exceptional expertise in successfully closing this transaction.' Hitesh Asarpota, CEO of Emirates NBD Capital, said: 'We are proud to have played a pivotal role in facilitating Gulf Bank's milestone debut global syndicated loan transaction. The transaction was successfully completed with strong demand from both regional and global investors. This transaction is a testament to Emirates NBD Capital's commitment to fostering long-term partnerships, strengthening relationships with key institutions, and enhancing access to global liquidity.' Commenting on the transaction, Rola Abu Manneh, Chief Executive Officer of Standard Chartered, UAE Middle East and Pakistan said: 'This successful transaction underscores Gulf Bank's market position and the high level of investor confidence in the region. The strong demand for the facility highlights both, the resilience of the syndication market and the depth of liquidity available to leading institutions. Standard Chartered remains committed to providing clients with innovative financing solutions and seamless access to global liquidity.' The Facility was closed with participation from a diversified mix of regional and international lenders, with Emirates NBD Bank (P.J.S.C.) acting as Facility Agent. arabtimes
Zawya
25-02-2025
- Business
- Zawya
Gulf Bank secures US$ 650mln debut senior unsecured syndicated term loan facility
Kuwait: Gulf Bank K.S.C.P. ('Gulf Bank' or the 'Borrower'), one of the leading conventional banks in Kuwait, has successfully signed a US$ 650 Million Senior Unsecured Syndicated Term Loan Facility (the 'Facility'). Emirates NBD Capital Limited, the investment banking arm of Emirates NBD, and Standard Chartered served as Global Coordinators, Mandated Lead Arrangers and Bookrunner ('MLABs'), acting both individually and collectively in these roles. The Facility is Gulf Bank's debut transaction in the international syndicated loan markets and opens up a sustainable and diversified route of financing through access to the international and regional syndicated loan markets. The proceeds of the Facility will be utilized to fund Gulf Bank's general corporate purposes. The Facility was anchored by the MLABs and was launched to a select group of international and regional investors in general syndication. Waleed Mandani, Gulf Bank's Acting Chief Executive Officer, commented: 'The transaction received strong interest from both global and regional banks, allowing Gulf Bank to expand its funding sources and diversify its investor base. The Facility was significantly oversubscribed, allowing Gulf Bank to exercise the green-shoe option to upsize the Facility to US$ 650 Million from the original size at launch of US$ 500 Million, post scale-back. The success of this debut transaction affirms Gulf Bank's reputation as a regional banking leader with good domestic franchise, high credit worthiness and impeccable financial strength.' Mandani Added: 'Emirates NBD and Standard Chartered have demonstrated exceptional expertise in successfully closing this transaction.' Hitesh Asarpota, CEO of Emirates NBD Capital, said: 'We are proud to have played a pivotal role in facilitating Gulf Bank's milestone debut global syndicated loan transaction. The transaction was successfully completed with strong demand from both regional and global investors. This transaction is a testament to Emirates NBD Capital's commitment to fostering long-term partnerships, strengthening relationships with key institutions, and enhancing access to global liquidity.' Commenting on the transaction, Rola Abu Manneh, Chief Executive Officer of Standard Chartered, UAE Middle East and Pakistan said: 'This successful transaction underscores Gulf Bank's market position and the high level of investor confidence in the region. The strong demand for the facility highlights both, the resilience of the syndication market and the depth of liquidity available to leading institutions. Standard Chartered remains committed to providing clients with innovative financing solutions and seamless access to global liquidity.' The Facility was closed with participation from a diversified mix of regional and international lenders, with Emirates NBD Bank (P.J.S.C.) acting as Facility Agent. About Gulf Bank Gulf Bank is one of the leading conventional banks in Kuwait with KD 7.5 billion in total assets as of 30 December 2024 and provides a wide range of services including consumer banking, wholesale banking, treasury, and financial services through its large network of over 50 branches and over 300 ATMs in Kuwait. About Emirates NBD Emirates NBD (DFM: Emirates NBD) is a leading banking group in the MENAT (Middle East, North Africa and Türkiye) region with a presence in 13 countries, serving over 9 million active customers. As at 31st December 2024, total assets were AED 997 billion, (equivalent to approx. USD 271 billion). The Group has operations in the UAE, Egypt, India, Türkiye, the Kingdom of Saudi Arabia, Singapore, the United Kingdom, Austria, Germany, Russia and Bahrain and representative offices in China and Indonesia with a total of 848 branches and 4,601 ATMs / SDMs. Emirates NBD is the leading financial services brand in the UAE with a Brand value of USD 3.87 billion. Emirates NBD Group serves its customers (individuals, businesses, governments, and institutions) and helps them realise their financial objectives through a range of banking products and services including retail banking, corporate and institutional banking, Islamic banking, investment banking, private banking, asset management, global markets and treasury, and brokerage operations. The Group is a key participant in the global digital banking industry with 97% of all financial transactions and requests conducted outside of its branches. The Group also operates Liv, the lifestyle digital bank by Emirates NBD, with close to half a million users, it continues to be the fastest-growing bank in the region. Emirates NBD contributes to the construction of a sustainable future as an active participant and supporter of the UAE's main development and sustainability initiatives, including financial wellness and the inclusion of people of determination. Emirates NBD is committed to supporting the UAE's Year of Sustainability as Principal Banking Partner of COP28 and an early supporter to the Dubai Can sustainability initiative, a city-wide initiative aimed to reduce use of single-use plastic bottled water. About Standard Chartered Bank We are a leading international banking group, with a presence in 52 of the world's most dynamic markets. Our purpose is to drive commerce and prosperity through our unique diversity, and our heritage and values are expressed in our brand promise, here for good. Standard Chartered PLC is listed on the London and Hong Kong stock exchanges.
