Gulf Bank re­ports 11% in­crease in net profit

To­tal as­sets at KD 5.621B, to­tal share­hold­ers’ eq­uity in­creased 6% to KD 561m

Kuwait Times - - BUSINESS -

Gulf Bank has an­nounced yes­ter­day a net profit of KD 32.8 mil­lion for the first nine months of 2016 com­pared to KD 29.6 mil­lion earned dur­ing the same pe­riod in 2015, an in­crease of 11 per­cent.

To­tal share­hold­ers’ eq­uity has in­creased by 6 per­cent to KD 561 mil­lion com­pared to KD 529 mil­lion in the year ear­lier pe­riod while to­tal as­sets grew by 4 per­cent to KD 5.621bil­lion.

Credit costs (spe­cific pro­vi­sions plus write-offs less re­cov­er­ies) have de­clined by 69 per­cent to KD 8.2 mil­lion in the first nine months of 2016 com­pared with KD 26.1 mil­lion over the same pe­riod in 2015. This de­cline in­di­cates a con­tin­u­ous im­prove­ment in the Bank’s loan qual­ity. The Bank’s to­tal loan re­serves on the bal­ance sheet stood at KD 306 mil­lion. The Bank’s Cap­i­tal Ad­e­quacy Ra­tio un­der Basel III is at 17.7 per­cent, which is well above the reg­u­la­tory re­quire­ment of 14.0 per­cent.

Omar Ku­tayba Al­ghanim, Gulf Bank’s Chair­man said: “I’m happy to re­port Gulf Bank’s strong fi­nan­cial per­for­mance and I am grat­i­fied with our abil­ity to con­tinue to grow and main­tain our strong cap­i­tal po­si­tion. The Bank’s dou­ble digit growth in net profit and strong cap­i­tal ad­e­quacy ra­tio are the re­sult of meet­ing a num­ber of key strate­gic ob­jec­tives and re­flect the Bank’s strat­egy to de­liver in­no­va­tive, easy-to-use prod­ucts, cou­pled with a su­pe­rior cus­tomer ex­pe­ri­ence.”

Elab­o­rat­ing on the re­sults, Al­ghanim added: “In Whole­sale Bank­ing, the cor­po­rate bank­ing suite of prod­ucts con­tin­ues to at­tract at­ten­tion. The cash man­age­ment sys­tems, on­line salary pro­cess­ing, and col­lec­tions sys­tems en­able clients to per­form any num­ber of ser­vices quickly and eas­ily. On the Con­sumer Bank­ing side, our award-win­ning Gulf Re­wards credit card loy­alty pro­gram has con­trib­uted to dou­ble-digit growth in to­tal year-over-year spend­ing. Four months into the launch of our ‘Blink­ing to Bank’ bio­met­ric mo­bile bank­ing ap­pli­ca­tion we have seen a sig­nif­i­cant growth in the num­ber of cus­tomers us­ing mo­bile bank­ing over last year.”

Dur­ing this pe­riod, the Bank also launched a num­ber of im­prove­ments to bet­ter ac­com­mo­date cus­tomers with spe­cial needs. Em­ploy­ees in var­i­ous branches are now cer­ti­fied to com­mu­ni­cate in sign lan­guage fol­low­ing the com­ple­tion of a four-week train­ing pro­gram. The Bank’s Bayan branch is the first branch to have a new Au­to­mated Teller Ma­chine (ATM) de­signed for those who have spe­cial needs. Fea­tures in­clude suit­able height for wheel­chairs, Braille Key­pad, voice guid­ance for blind clients, in­creased pri­vacy for the users, and wheel­chair ac­ces­si­bil­ity ramps.

Gulf Bank is rated “A” from the three lead­ing in­ter­na­tional credit rat­ing agen­cies. The Bank is rated A3 from Moody’s, A- from Stan­dard & Poor’s, and A+ from Fitch. These rat­ings re­flect the Bank’s strict risk stan­dards, along with its re­silient core prof­itabil­ity, and ad­e­quacy of its cap­i­tal buf­fers. These agen­cies have also af­firmed the Bank’s as­set qual­ity, cap­i­tal­iza­tion, solid rev­enue-gen­er­at­ing ca­pac­ity, and sound risk-man­age­ment sys­tems and prac­tices.

Al­ghanim con­tin­ued: “I would like to thank our share­hold­ers and the Board of Direc­tors for their con­tin­ued com­mit­ment. Fur­ther­more, I would also like to thank our val­ued cus­tomers for their on­go­ing trust in our prod­ucts and ser­vices. All of this would not be pos­si­ble with­out the hard work of our ded­i­cated staff; I ex­tend my grat­i­tude and ap­pre­ci­a­tion to the Gulf Bank team for their ser­vice and sup­port in achiev­ing this progress”.

Ma­jor So­cial Re­spon­si­bil­ity Ini­tia­tives

Gulf Bank’s cor­po­rate so­cial re­spon­si­bil­ity (CSR) pro­gram is com­mit­ted to sup­port­ing youth, ed­u­ca­tional ini­tia­tives, and pro­mot­ing our her­itage. In or­der to help em­power the next gen­er­a­tion, the Bank con­tin­ued its long-stand­ing part­ner­ship with INJAZ to de­liver en­tre­pre­neur­ial and lead­er­ship skills de­vel­op­ment pro­grams to high school and univer­sity stu­dents. Vol­un­teers from the Bank par­tic­i­pated in over 50 pro­grams and helped INJAZ reach over 8,000 stu­dents. The Bank was named as INJAZ’s ‘Fi­nan­cial Lit­er­acy Cham­pion’ for teach­ing 14 per­sonal fi­nance cour­ses to over 400 stu­dents at pub­lic and pri­vate high schools in Kuwait.

In Au­gust Gulf Bank was also the lead spon­sor of the ‘28th Me­mo­rial Jour­ney for Pearl Div­ing’. The jour­ney is or­ga­nized each year by the Com­mit­tee of the Marine Her­itage of the Kuwait Sea Sport Club, un­der the Pa­tron­age of His High­ness the Amir Sheikh Sabah AlAhmed Al-Jaber Al-Sabah. The Pearl Div­ing Me­mo­rial Jour­ney teaches youth about the lives our an­ces­tors and helps to pre­serve our her­itage and tra­di­tions.

The Bank was also a lead spon­sor of the Kuwait Pav­il­ion at the 15th In­ter­na­tional Ar­chi­tec­ture Ex­hi­bi­tion - La Bi­en­nale di Venezia, which kicked off in the sum­mer and con­cludes in Novem­ber 2016. Kuwait’s par­tic­i­pa­tion in the Venice Bi­en­nale was com­mis­sioned and or­ga­nized by the Na­tional Coun­cil for Cul­ture, Arts and Let­ters (NCCAL) un­der the theme of “Re­port­ing from the Front” and the cu­ra­tors were youth ar­chi­tects from Kuwait and Bahrain. In an un­prece­dented step, these two cu­ra­tors so­licited and in­cluded de­sign and writ­ten con­tri­bu­tions from across the Gulf re­gion.

Gulf Bank Chair­man Omar Ku­tayba Al­ghanim

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