Gulf Bank's nine-month profit surges to $108m
DUBAI, November 5, 2016
Gulf Bank, Kuwait's fourth-largest lender by assets, has reported a net profit of KD32.8 million ($108 million) for the first nine months, up 11 per cent over KD29.6 million ($98 million) for the same period last year.
The bank's total shareholders’ equity has increased by six per cent to KD561 million compared to KD529 million in the year earlier period while total assets grew by four per cent to KD 5,621 million.
Credit costs (specific provisions plus write-offs less recoveries) have declined by 69 per cent to KD8.2 million in the first nine months of 2016 compared with KD26.1 million over the same period in 2015.
This decline indicates a continuous improvement in the Bank’s loan quality. The Bank’s total loan reserves on the balance sheet stood at KD306 million.
The bank’s capital adequacy ratio under Basel III is at 17.7 per cent, which is well above the regulatory requirement of 14 per cent.
On the performance, chairman Omar Kutayba Alghanim, said: "I am happy to report Gulf Bank’s strong financial performance and I am gratified with our ability to continue to grow and maintain our strong capital position."
"The bank’s double digit growth in net profit and strong capital adequacy ratio are the result of meeting a number of key strategic objectives and reflect the Bank’s strategy to deliver innovative, easy-to-use products, coupled with a superior customer experience," stated Al Ghanim.
In wholesale banking, the top official said, the corporate banking suite of products continues to attract attention.
"The cash management systems, online salary processing, and collections systems enable clients to perform any number of services quickly and easily. On the Consumer Banking side, our award-winning Gulf Rewards credit card loyalty program has contributed to double-digit growth in total year-over-year spending," he noted.
"Four months into the launch of our ‘Blinking to Bank’ biometric mobile banking application we have seen a significant growth in the number of customers using mobile banking over last year," he added.
The Gulf Bank said during this period, it launched a number of improvements to better accommodate customers with special needs.
Employees in various branches are now certified to communicate in sign language following the completion of a four-week training program, it stated.
"Our Bayan branch is the first to have a new automated teller machine (ATM) designed for those who have special needs. Features include suitable height for wheelchairs, Braille Keypad, voice guidance for blind clients, increased privacy for the users, and wheelchair accessibility ramps," said Al Ghanim.
Gulf Bank said it has received “A” ratings from three leading international credit rating agencies - A3 from Moody’s, A- from Standard & Poor’s, and A+ from Fitch.
These ratings reflect the bank’s strict risk standards, along with its resilient core profitability, and adequacy of its capital buffers, remarked Al Ghanim.-TradeArabia News Service