Gulf Bank records an increase of 10% in net profit
Global rating agencies upgrade their outlook on bank
Gulf Bank K.S.C.P. announced yesterday its financial results for the first half of 2017. The Bank recorded a net profit of KD 22.8 million in the first 6 months of 2017, an increase of 10 percent over the same period of 2016. The Bank was able to generate a net interest income of KD 63.5 million and an operating profit of KD 60.5 million during the first half of 2017, recording an increase of 7.5 percent and 8.2 percent respectively. In addition, credit costs (specific provisions and write-offs less recoveries) continue to improve quarter after quarter with a decline of 11 percent in Q2 compared to Q1 of 2017.
As of first half 2017, total assets of the bank grew by 3 percent compared to first half of 2016 while Loans & Advances increased by 2 percent over the same period of last year. Total equity reported at the end of first half 2017 was KD 577.5 million and general provisions stood at KD 222 million for the same period, representing 38 percent of total equity.
Commenting on the results, Omar Kutayba Alghanim, Gulf Bank Chairman, said: "We are pleased with our Bank's solid performance for the first half of 2017. This has reflected positively on the earnings per share as it grew by 10 percent to 8 fils per share for the first half of 2017 compared to the previous year." Alghanim continued: "This year, we are proud to announce that S&P Ratings has revised its outlook of Gulf Bank to "Positive" from "Stable".
As part of their 2017 annual credit rating review, S&P Global Ratings revised their outlook on the bank to "Positive" from "Stable" and affirmed its issuer credit rating at "A-". Similarly, Moody's Investors Service affirmed the bank's "A3" long-term deposits rating and "Stable" outlook. In addition, Capital Intelligence also affirmed the Bank's Financial Strength Rating at "BBB+" and the subordinated bond rating at "BBB" both with "Stable" outlooks. Fitch continues to rate Gulf Bank at "A+" for its Issuer Default Rating with a "Stable" outlook.
Gulf Bank continues to be strongly recognized both internationally and locally. During Q2 2017, the bank received 'The Best Mobile Banking Experience in the Middle East' award from Arabian Business Magazine, 'The Best Retail Bank in Kuwait' award by The Banker Middle East and was named by Forbes Middle East among the Top 10 Companies in Kuwait during the Forbes 'Celebrating Kuwait's Success' event.
Alghanim concluded his remarks by stating: "I would like to thank everyone who has contributed to these outstanding results. I want to thank our customers for their continuous support and loyalty towards Gulf Bank. I appreciate the dedication of our management and staff, commitment of our Board of Directors and Shareholders, and the support from the Central Bank of Kuwait."
Gulf Bank Chairman Omar Alghanim