Gulf Bank reports $141m profit, up 10pc

31/01/2017 07:39 AST

Kuwait-based Gulf Bank recorded a net profit of KD43 million ($140.88 million) for 2016, an increase of 10 per cent over the previous year.

The earnings per share was 15 fils and the board of directors has recommended a cash dividend of 7 fils per share, an increase of 75 per cent compared with 4 fils per share in the prior year.

The bank’s loan quality continued to improve; gross credit costs (specific provisions plus write-offs) declined by 16 per cent to KD72 million compared to KD85 million in 2015. Non-performing loans (NPLs) declined to KD93 million or 2.4 per cent of total loans, levels that have not been seen since 2007, the bank said.

Omar Kutayba Alghanim, Gulf Bank’s chairman, said: “These past three years have marked significant milestones in the transformation of Gulf Bank, moving it solidly forward on the path of growth, and meeting a number of key strategic objectives. Today, I am pleased to announce that Gulf Bank has again achieved double-digit net income growth in a very competitive industry and challenging economic environment.”

Alghanim continued: “The bank enjoys a strong capital adequacy ratio of 18.5 per cent which is well above the regulatory requirement of 14 per cent. The capital of the bank was enhanced by our successful issuance of KD100 million of Tier II capital in May 2016. The assets of the bank were steady at KD5.467 billion while total shareholders’ equity was up by 7 per cent to KD573 million.

Customer loans ended the year at KD3.446 billion. In terms of profitability, the bank’s earnings per share for the year ending 2016 was 15 fils compared to 13 fils for the year ending 2015.

The return on average assets was 0.79 per cent compared to 0.72 per cent in 2015 and the return on average equity was 7.73 per cent compared to 7.43 per cent for the previous year.”

Meanwhile, Gulf Bank continues to enjoy an “A” rating from the top three international rating agencies: Moody’s Investors Services (A3); Fitch Ratings (A+); and Standard & Poor’s - S&P (A-). During this year, all three rating agencies affirmed the Bank’s ratings and its stable outlook and revenue generating ability.

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