Al-Khalij Reports KWD 27.4 Million Net Profit in First Half

Gulf Bank announced its financial results for the first half ended June 30, 2026, reporting a net profit of KD 27.4 million, an increase of KD 3.4 million or 14.1% compared to the KD 24 million net profit recorded in the first half of 2025. The bank also recorded operating income of KD 94.3 million in the first half of 2026, representing a 2.7% increase compared to the same period last year.

Regarding the second quarter ended June 30, 2026, Gulf Bank achieved a net profit of KD 18.0 million and operating income of KD 49.2 million, reflecting growth of 22.6% and 2.9%, respectively, compared to the same period of the previous year.

The improvement in net profit for the first half of 2026 is attributed to a 1.0% rise in net interest income, alongside strong growth in non-interest income by 9.6%. Specifically, net fee and commission income reached KD 14.7 million, up 13.3% in the first half of 2026 compared to the same period last year. However, this improvement in operating profit was partially offset by an 8.0% increase in operating expenses.

Additionally, the improvement in total provisions and impairment losses, which decreased by KD 4.8 million or 24.6% compared to the previous year, contributed to strengthening the bank’s net profit for the first half of 2026.

Regarding asset quality, the non-performing loans (NPL) ratio stood at 1.2% as of June 30, 2026, down from 1.4% in the previous year. The bank continued to maintain a strong coverage ratio for non-performing loans at 312%, inclusive of total provisions and collateral.

Total credit provisions amounted to KD 251 million as of June 30, 2026, while the bank’s provisions under International Financial Reporting Standard 9 (Expected Credit Losses) reached KD 177 million. This indicates that the bank holds a healthy level of excess provisions amounting to KD 74 million, significantly exceeding the IFRS 9 requirements.

Compared to the results as of December 31, 2025, total assets increased by 5.1% to reach KD 8.1 billion, while net loans and advances rose by 7.6% to KD 6.3 billion. Deposits remained stable at KD 6 billion, and total shareholders’ equity stood at KD 846 million.

The bank’s Tier 1 capital ratio was 13.8%, which is 2.8 percentage points higher than the minimum regulatory requirement of 11%. The capital adequacy ratio reached 15.8%, also 2.8 percentage points above the minimum regulatory requirement of 13%.

**Economic Resilience**

Commenting on the financial results for the first half of 2026, Ahmed Al-Bahar, Chairman of the Board of Gulf Bank, stated: "We are proud of the performance achieved by Gulf Bank during the first half of 2026, with net profit reaching KD 27.4 million, representing a positive increase of 14.1% compared to the previous year. These encouraging results come amidst an operational environment filled with challenges and regional tensions since the beginning of the year, reflecting the strength of our core banking activities, the solidity of our financial position, and our ability to execute our strategy efficiently and consistently."

He added: "The first half of 2026 has reinforced the importance of maintaining solid financial foundations and adopting a prudent approach to growth. Despite ongoing regional challenges, the Kuwaiti economy has maintained a good level of stability, supported by the Central Bank of Kuwait’s decision to keep the discount rate unchanged during the period. This has contributed to enhancing economic stability and providing clearer visibility for the business and financial sectors. Furthermore, sovereign debt issuances, both in local and international markets, represent an important step toward strengthening funding sources and developing the local debt instruments market. This has a positive impact on the national economy by supporting financial planning, deepening financial markets, and providing additional investment tools for banks and investment institutions. Moreover, the General State Budget Project for the fiscal year 2026/2027 reflects the government’s commitment to continuing capital expenditure, with approximately KD 3.1 billion allocated to capital projects. These continuous investments in strategic infrastructure projects are expected to stimulate economic activity and create promising financing opportunities for the banking sector."

Regarding current regional developments, Al-Bahar said: "We continue to closely monitor geopolitical developments. While regional tensions may cast a shadow on sentiments and business confidence, the Kuwaiti banking sector remains strong in terms of capital and liquidity. We all hope that current conflicts will find a peaceful resolution, contributing to greater regional stability and enhancing economic prospects."

Concluding his remarks, Al-Bahar said: "As we enter the second half of 2026, we will continue to focus on implementing our strategic priorities and capitalizing on the promising opportunities created by the continuous development journey in the State of Kuwait. Based on the solidity of our financial position and our prudent business management approach, we are in a strong position to continue delivering sustainable and long-term value to our shareholders."

**Growth Momentum in Business**

Commenting on Gulf Bank’s operational performance, Acting CEO Samy Mahfouz stated: "Gulf Bank has achieved strong business growth during the first half of 2026, with net loans and advances increasing by 7.6% year-to-date. This growth was driven by a disciplined risk management approach, which was reflected in a 24.6% decrease in total provisions and impairment losses during the first half of 2026 compared to the same period last year. These results collectively demonstrate our ability to grow our business responsibly while maintaining the quality of our balance sheet."

He added: "The bank’s total assets have exceeded KD 8 billion since the beginning of the year, supported by the continuity of financing activities across key sectors. This outstanding performance, along with a supportive operational environment, provides a solid foundation for further growth. Additionally, we have continued to diversify our funding sources to support growth and strengthen the bank’s funding structure. At the same time, the continued awarding of development projects across infrastructure and development sectors is expected to stimulate demand for corporate financing. With good liquidity levels available in the banking sector as a whole, these developments place us in an excellent position to continue supporting our clients and seizing opportunities for sustainable growth."

Mahfouz continued: "In parallel with the momentum in our business, we have continued to make progress in our preparations for the transition to Islamic banking, subject to obtaining the required regulatory approvals and shareholder consent. The previous period saw tangible progress in several key tracks, including governance, products, systems, and operational readiness, which positions the bank to confidently move to the next stage of its transformation journey."

Prestigious Ratings

Global credit rating agencies have reaffirmed Gulf Bank’s financial strength and operational capacity. Fitch Ratings maintained the bank’s long-term Issuer Default Rating at ‘A’ with a stable outlook, while Moody’s affirmed its long-term deposit rating at ‘A3’ with a stable outlook. Capital Intelligence also maintained the bank’s long-term foreign currency rating at ‘+A’ with a stable outlook. These ratings underscore the bank’s stability and sound risk management practices.

Leading Positions and Global Awards

- Forbes magazine ranked Gulf Bank among the top 100 largest companies in the Middle East for 2026, with assets exceeding $25.1 billion and more than 45 branches.

- Gulf Bank is ranked among the top 10 most valuable brands in Kuwait for 2026, valued at $237 million, according to the global Brand Finance rankings.

- Gulf Bank received two prestigious awards from International Business magazine for 2026: Best Corporate Banking App in the Middle East and Excellence in Customer Experience in the Banking Sector.

- Gulf Bank won two prestigious awards in the fields of “Digital Banking Innovation” and “Financial Services with Social Impact” at the Global Brands magazine awards for 2026.