KUWAIT: Gulf Bank yesterday announced an operating profit before provisions of KD 108 million for the year ended, 31 December 2015, and a Net profit at KD 39 million, which is a 10 percent increase over 2014. At the end of December 2015, the Bank’s total assets were KD 5,438 million. The growth in deposits was 5 percent, increasing the total deposits at the bank to KD 4,563 million. Total shareholders’ equity increased by 5 percent to KD 538 million.
Loan quality remains strong, reflecting the Bank’s prudent underwriting policies and procedures. Non-performing loans (NPLs) declined from 3.2 percent at the end of 2014 to 2.7 percent at the end of 2015 and coverage (collaterals and provisions) on NPLs improved to 348 percent.
Commenting on the results, Omar Kutayba Alghanim, Gulf Bank’s Chairman said: ” These past several years have marked the culmination of the journey to transform Gulf Bank with 2015 decisively demonstrating the Bank has moved onto a different path of growth and innovation. We have seen a 10 percent growth in profits; strengthened our balance sheet; diversified our portfolio to reduce concentrations in risk sectors; recorded net double digit growth in net profit for two straight years; coverage (collateral and provisions) on NPLs reached 348 percent; and our retail sector continues to achieve strong growth. Furthermore, the Bank closes the year with an “A” rating from the three leading credit agencies, having received upgrades from both Moody’s and Standard & Poor’s. All of these indicators are positive and we will be proposing cash dividends for our shareholders, of 4 fils per share, at our upcoming Annual General Meeting.”
Alghanim continued: “I am excited by the transformation of the bank and looking forward to continuing to innovate and grow in new areas, particularly with new technologies. Furthermore, our qualitative indicators on client satisfaction are up, which is a leading marker for even better future results. During 2016, we are reinforcing our commitment to attract, develop, and retain the best talent; to that end, our methods, systems and practices will be revamped to world-class standards. I would like to thank the Board of Directors, our Shareholders, the Central Bank of Kuwait, the Capital Markets Authority, and our staff for their support throughout the year.
César González-Bueno, Gulf Bank’s CEO said: “The Bank’s strategic direction, set by the Chairman and the Board, was successfully implemented during 2015. There was net growth in Wholesale, despite the purposeful decrease in high-risk sectors and clients. In Retail, we had double-digit growth in consumer loans and a 4 percent growth in our current and savings accounts, both of which have been faster than market growth. Following the revamp of two of our customer segments, the Kuwaiti salary proposition increased by 12 percent and the youth/student focused Red increased by 52 percent. In terms of new products, we launched our new loyalty program Gulf Rewards which is the fastest and most rewarding loyalty program in Kuwait. It includes Gulf Points for flights and hotels redemptions and ‘Entertainer’, Kuwait’s first geo-locator mobile application that gives customers exclusive offers in Kuwait, UAE, and London. I am encouraged by our results and product launches in 2015, we will carry this momentum of transformation and healthy growth into 2016. In Wholesale, new products and enhanced services will soon hit the market and in Retail, major improvements in products and channels are about to be launched.”