Gulf Bank Net Profit Increases by 12% to KD 48 million

Business

Gulf Bank Net Profit Increases by 12% to KD 48 million

Gulf Bank K.S.C.P. introduced today its monetary outcomes for the year ending 31 December 2017. The Bank recorded a net profit of KD 48 million (earnings per share of 17 fils), an increase of 12% over the previous year's web profit of KD 43 million (revenues each share of 15 fils). The Board of Directors has actually recommended a cash money dividend of 9 fils each share, a boost of 29% over the cash money dividend of 7 fils that was distributed in 2014. In addition, the Bank accomplished a 8% increase in Running Revenue of KD181 million and an 11% rise in Running Revenue prior to Provisions/ Problems Losses of KD 117 million, as compared to 2016.

Loan quality continued to enhance as non-performing car loans (NPLs) declined to KD 73 million or 1.7% of total car loans compared with KD 93 million or 2.4% at the end of 2016. Insurance coverage of non-performing fundings was 414% by the end of 2017.

Discussing the results, Mr. Omar Kutayba Alghanim, Gulf Bank's Chairman said: "These previous couple of years have marked substantial milestones in the transformation of Gulf Bank, moving it well forward on the path of healthy and balanced development Today, I delight in to reveal that Gulf Bank has not just boosted its success by achieving double-digit web earnings growth, but also boosted the high quality of its finance profile by reducing the non-performing loan proportion to 1.7% at the end of 2017."

Resilient Balance Sheet

Mr. Alghanim added:: "The Bank continues to appreciate a strong capital adequacy ratio of 17.8% which is well above the governing requirement of 14%. The assets of the Bank expanded by 4% to KD 5,683 million while complete investors' equity was up 5% to KD 601 million. Gross Client loans finished the year at KD 4,060 million, an increase of 8% over the previous year-end period. In terms of productivity, the Bank's revenues each share for the year finishing 2017 was 17 fils compared to 15 fils for the year finishing 2016. The return generally properties was 0.86% as compared to 0.79% in 2016, and the return usually equity was 8.2% compared with 7.7% for the previous year."

Positive Credit Rating Outlook

Gulf Bank continues to be well recognized in terms of its credit worthiness and monetary toughness internationally. Throughout the yearly credit ranking evaluation of the Bank by the leading international rating agencies, Gulf Bank had the ability to achieve three favorable rating activities during 2017: i) S&P Global Ratings and ii) Capital Intelligence, both upgraded the outlook of the bank from Stable to Positive, while iii) Fitch Ratings upgraded the Viability rating of Gulf Bank from bb to bb+. Throughout the year, Moody's Financiers solution attested Gulf Bank's A3 ranking and "Steady" overview in its credit point of view upgrade provided in Could 2017. Similarly, in October 2017, Fitch Rankings verified the Bank's Score at A+ and "Secure" overview while updating its Feasibility ranking to bb+.

In June 2017, S&P Global Rating revised the outlook of the bank to "Positive" from "Stable" and affirmed the bank's counterparty credit rating at A-/ A- 2. On the Tier II financial debt issuance of Gulf =Bank, Resources Intelligence has actually verified the rating of the bond at BBB with "Steady' outlook in Could 2017 and affirmed the total bank ranking at BBB+, with an updated "Favorable" expectation in December 2017. Discussing Gulf Bank's credit ratings, Mr. Alghanim added: "We are happy to share this favorable information with our investors. The upgrade of Gulf Bank's overview to positive by S&P Global Ratings and Resources Intelligence, two recognized worldwide credit score firms, is validation of the ongoing enhancements at Gulf Bank, particularly in this extremely competitive and difficult economic environment."

External Recognition

In terms of external acknowledgment, the Asian Banker awarded Gulf Bank a regional award for Credit Risk Technology Implementation of the Year in the Middle East. The Bank was likewise granted the Best Innovation in Banking - Kuwait for its mobile banking app by Banker Middle East/CPI Financial. Worldwide, the Bank remains to hold the Guinness World Record for the 'Most Influential Ramadan Commercial in the world for its Al Danah account prize of One Million KD. In regards to advertising and marketing and imagination, the Bank was awarded the 'Most Influential Ramadan Commercial' at the Arab Media Forum's Advertising and marketing Imagination Awards. Mr. Alghanim concluded by saying: "I wish to thank our valued customers for their ongoing count on Gulf Bank. I would also prefer to extend my honest admiration to our Shareholders, Board of Supervisors, the Central Bank of Kuwait and the Resources Markets Authority for their continuous assistance throughout the year. Furthermore, I wish to thank our personnel for their devoted service and for being part of the Gulf Bank family.".