Gulf Bank records an in­crease of 10% in net profit

Global rat­ing agen­cies up­grade their out­look on bank

Kuwait Times - - FRONT PAGE -

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

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