Kuwait's Gulf Bank swung to a second-quarter net profit of 1.48 million dinars ($5.14 million) from a loss of 9.1 million dinars a year earlier, after the lender sold.

Gulf Bank in a statement on Monday reported a net profit of 2 million dinars for the first half to June 30. Reuters calculated the second-quarter net profit by subtracting its first-quarter net of 524,000 dinars.

Its mid-year operating profit rose to 87.1 million dinars from 51.1 million a year earlier. It was buoyed by 22 million dinars after 'the disposal of part of the international investment portfolio,' the bank said.

It said most of its first-half operating profit 'was retained to meet the provisions for the risk of credit facilities portfolio'.

Chairman Ali al-Bader said he hoped the coming period 'will witness an improvement in the net profit, which is of course, in part dependent on the economic situation.'

Gulf Bank was rescued by the central bank in 2008 after derivatives losses and sovereign wealth fund Kuwait Investment Authority (KIA) owns a 16 per cent stake. Its troubles prompted the government to guarantee all deposits in local banks to restore confidence.

Gulf Bank's shares closed up 2.3 percent on Monday. The results were released after the market closed.-Reuters