Gulf Bank reports 11% increase in net profit
Total assets at KD 5.621B, total shareholders’ equity increased 6% to KD 561m
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.