Gulf Bank posts 11 pct increase in net profit in H1, 2016
[via Arab Times]
KUWAIT CITY, July 24: Gulf Bank today announced a net profit of KD 20.7 million for the first half of 2016, an increase of 11 percent or KD 2 million over the same period last year. Operating profit, excluding general provision expenses improved significantly from KD 32.6 million to KD 41.9 million, an increase of 29 percent. Loan quality continues to improve as credit costs of KD 3.2 million (specific provisions plus write-offs less recoveries) were booked in H1 2016, down 85 percent from KD 22.0 million during the same period last year..
The bank’s total loan loss reserves on the balance sheet stood at KD 302 million. General provisions comprise nearly KD 200 million or 66 percent of the total provisions. The bank successfully completed the issuance of KD 100 million in Tier 2 capital in May 2016, pushing its Capital Adequacy Ratio under Basel III to 18.3 percent against the minimum regulatory requirement of 14.0 percent.
Omar Kutayba Alghanim, Gulf Bank’s Chairman said: “These are very creditable results and reflect Gulf Bank’s core financial stability and strength. Moreover, our ability to continue to grow and maintain our strong capital position was further enhanced by our bond issue in May, which was healthily oversubscribed. volunteer to work with INJAZ to teach entrepreneurial and leadership skills. Gulf Bank’s corporate social responsibility (CSR) program is committed to educational initiatives that make a sustainable impact with youth and in the community. I am very proud of our record in this area to date.”