Gulf Bank has posted a net profit of KD12.8 million ($45.3 million) for the first half of 2012 against KD18.3 million over the same period 2011 marking a 30 per cent drop due to an increase in precautionary reserve.

The Kuwait-based bank, which posted  an operating profit of KD58.7 million, further increased the precautionary reserve by KD34 million to reach KD124 million, in line with its strategic plan to create a “fortress balance sheet” and to further its capacity to grow and expand.

The bank’s total assets reached KD4,876 million, deposits KD4,063 million and total shareholders’ equity stands at KD440 million.

Mahmoud Al-Nouri, Gulf Bank’s chairman said: “The first half year results reflect the continued positive impact of our customer-centric strategy of providing the best and fastest banking services in Kuwait, as well as the efforts taken by the Bank’s Board of Directors and various business groups, including Consumer Banking, Corporate, International Banking and Treasury.”

“So far, 2012 is turning out to be positive, with improved results, enhanced provisions and major award wins for Gulf Bank since the beginning of the year. We are proud of our accomplishments and glad to see that our overall banking strategy is consistently delivering good results, despite the difficult economic conditions.”

“I would stress, with confidence, that Gulf Bank has restored its leading position in the local market in terms of product and service innovation. We will continue to exert efforts towards boosting such position.

“We will further continue our conservative plan to maintain a fortress balance sheet to help us expand, and enable us, at the same time, to protect the Bank against any unforeseen market effects,” Al-Nouri added.

“Looking ahead, we will be focusing on the needs of our customers, developing our customer base and delivering returns to our shareholders.  We will also address new opportunities to grow and deliver excellence in corporate and consumer banking services to the Kuwait market.

“I would like to extend my profound thanks and appreciation to the Board Members for their continued support.  I would also like to extend thanks and appreciation to the members of the executive management for their efforts and commitment to implement the prepared strategy, as well as all bank employees at all levels, for their commitment to provide the best and fastest service to our customers,” he concluded. – TradeArabia News Service