Gulf Bank records 10% Y-o-Y rise in net profit for first 9 months of 2017
Bank generates net interest income of KD 97.2 million
KUWAIT: Gulf Bank K.S.C.P. announced yesterday its financial results for the first nine months of 2017. The bank recorded a net profit of KD 36.1 million in the first nine months of 2017, an increase of 10 percent over the same period in 2016. The Bank was able to generate net interest income of KD 97.2 million and operating profit of KD 89.7 million during the first nine months of 2017, recording double digit growth of 10 percent and 11 percent, respectively, over the prior year period. Meanwhile, expenses remained flat for the first nine months compared to the same period in 2016.
Over the first nine months of 2017, total assets of the bank grew by 3.5 percent while Loans and Advances to customers increased by 3.3 percent. Total equity reported at the end of September 2017 was KD 591.2 million and general provisions stood at KD 225 million, 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 in the first nine months of 2017. This has reflected positively on earnings per share as it grew by 10 percent to 12 fils per share for the first nine months of 2017 compared to the previous year.”
Credit ratings Gulf Bank continues to enjoy favorable ratings from the top international credit rating agencies. In October 2017, Fitch Ratings upgraded Gulf Bank’s Viability Rating to ‘bb+’ from ‘bb’ and affirmed the bank’s Long-Term Issuer Default Rating at ‘A+’ with a Stable Outlook.
In Addition, S&P Global Ratings revised their outlook on the Bank to “Positive” from “Stable” and affirmed its issuer credit rating at “A-”in June 2017.
Similarly, Moody’s Investors Service affirmed the bank’s “A3” long-term deposits rating and “Stable” outlook in May 2017. Furthermore, Capital Intelligence affirmed the Bank’s Financial Strength Rating at “BBB+” and the subordinated bond rating at “BBB” both with “Stable” outlooks in May 2017.
Gulf Bank continues to be strongly recognized both internationally and locally. During Q3 2017, the bank received the ‘Best Retail Bank in Kuwait’ award and ‘Best Mobile Banking Application in Kuwait’, both by International Finance Magazine.
In regard to the FTSE classification of Boursa Kuwait as a secondary emerging market, Al-Ghanim said: “I would like to congratulate Kuwait on this achievement.
It will have a positive impact on Boursa Kuwait’s attractiveness to investors targeting emerging markets.
This will ultimately enhance the liquidity and the flow of investment funds to the Kuwaiti market.” “Our congratulations go to everyone who contributed to this achievement including the Capital Market Authority, Boursa Kuwait and Kuwait Clearing Company,” Al-Ghanim added.
Alghanim concluded his remarks on the Bank’s results’ 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.”
Solid performance reflects positively on EPS