Al-Khalij Bank Reports 41.9 Million Dinars in Net Profits for Nine Months

Gulf Bank announced its financial results for the nine months ended September 30, 2026, recording a net profit of KD 41.9 million, an increase of KD 3.5 million, or 9.1%, compared to a net profit of KD 38.4 million during the same period in 2025. Gulf Bank also reported operating income of KD 143.1 million for the first nine months of 2026, representing a 1.8% increase compared to the same period last year.

Regarding the results for the third quarter ended September 30, 2026, Gulf Bank achieved a net profit of KD 14.4 million and operating income of KD 48.8 million, broadly in line with levels recorded during the same period of the previous year.

The improvement in net profit for the first nine months of 2026 is attributed to a rise in net interest income by KD 3.0 million, or 2.7%, alongside an improvement in total provisions and impairment losses, which decreased by KD 6.9 million, or 24%, compared to 2025. This improvement was partially offset by an increase in operating expenses of KD 5.7 million, as well as a slight decline in non-interest income.

Regarding asset quality, the non-performing loans (NPL) ratio stood at 1.2% as of September 30, 2026, compared to 1.4% in the previous year. The bank continued to maintain a high coverage ratio for non-performing loans at 334%, inclusive of total provisions and collateral. Total credit provisions amounted to KD 252 million as of September 30, 2026, while the bank’s provisions under the requirements of International Financial Reporting Standard 9 (Expected Credit Losses) reached KD 163 million. This indicates that the bank holds a cushion of additional provisions amounting to KD 89 million, significantly exceeding the IFRS 9 requirements.

Compared to results as of December 31, 2025, total assets increased by 2.4% to KD 7.9 billion, while net loans and advances rose by 7.0% to KD 6.3 billion. Total deposits remained stable at KD 5.7 billion, and total shareholders’ equity stood at KD 860 million.

The bank’s Tier 1 capital ratio was 13.7%, which is 270 basis points above the minimum regulatory requirement of 11%. The capital adequacy ratio stood at 15.7%, also exceeding the minimum regulatory requirement of 13% by 269 basis points.

Economic Resilience

Commenting on the financial results for the first nine months of 2026, Mr. Ahmed Mohammed Al-Bahar, Chairman of the Board of Directors of Gulf Bank, stated: “Gulf Bank achieved positive performance during the first nine months of 2026, with net profit reaching KD 41.9 million, an increase of 9.1% compared to the same period in 2025.”

These results highlight the robustness of our operations and our ability to navigate changes in the business environment, as well as our commitment to implementing the Bank’s strategic direction.” He added: “During the third quarter, Kuwait continued its firm focus on advancing its economic reform agenda and achieving its long-term national priorities, despite the uncertainty associated with regional conflicts. We are optimistic about the momentum achieved during this period, particularly the progress made in developing the regulatory framework for the mortgage financing law, and the qualification of 22 consortia under the Real Estate Developer Program. These initiatives represent a significant step toward meeting Kuwait’s housing needs, revitalizing market activity, and creating new opportunities for the banking sector in the coming years.

Ahmed Al-Bahar concluded his statement by saying: “As we approach the end of 2026, we look forward to building on the progress achieved during the year and moving forward with the implementation of the Bank’s key strategic initiatives. The strength of our public finances, along with significant achievements across several priorities, provides a solid foundation for the next phase of Gulf Bank’s growth journey.

Business Growth

For his part, Acting Chief Executive Officer Samy Mahfouz said: “Our performance reflects the successful execution of our strategy and the strength of Gulf Bank’s core business in achieving sustainable and tangible growth. The Bank maintained business momentum, driven by strong growth in corporate credit facilities, while continuing to enhance the customer experience and develop our digital services. These efforts contributed to supporting the continuous growth of our balance sheet during the first nine months of 2026, with net loans and advances increasing by 7.0% to KD 6.3 billion, and total assets rising by 2.4% to KD 7.9 billion. This expansion was achieved while maintaining strong asset quality and credit discipline.

He added: “The third quarter marked an important milestone in Gulf Bank’s strategic transformation journey. After completing the necessary regulatory and operational preparations, the Bank announced its application to the Central Bank of Kuwait to proceed to the next phase of its transformation into a Sharia-compliant bank. This achievement reflects significant progress across various work streams and represents a pivotal step toward expanding our product offerings and delivering greater value to all our partners. In the coming phase, we look forward to continuing to implement the next steps of the transformation process, while simultaneously supporting business growth in the Bank’s key sectors.

Key Financial Indicators for the First Nine Months of 2026

1. Net profit grew by 9.1% to KD 41.9 million.

2. Operating income increased by 1.8% to KD 143.1 million.

3. Net loans and advances rose by 7.0% to KD 6.3 billion.

4. Non-performing loans ratio stood at 1.2%, with a coverage ratio of 334%, including total provisions and guarantees.

5. Capital adequacy ratio was 15.7%, with a Tier 1 capital ratio of 13.7%.

Operational Flexibility and Strong Financial Position

Leading global credit rating agencies have reaffirmed Gulf Bank’s strong financial position and operational flexibility. Fitch Ratings affirmed the Bank’s long-term issuer default rating at ‘A’ with a stable outlook, while Moody’s affirmed the Bank’s long-term deposit rating at ‘A3’ with a stable outlook.

Capital Intelligence has also maintained its long-term foreign currency rating at “A” with a stable outlook, underscoring the bank’s stability and sound risk management practices.

Innovative banking solutions and a distinguished customer experience

Throughout the third quarter of 2026, Gulf Bank continued to receive prestigious awards in recognition of its commitment to innovation and excellence in customer service. The bank was honored with several regional awards from Asian Banking & Finance, including the “Best Loyalty and Rewards Program” award, the “Branch Innovation” award, and the “Best Product for Gen Z” award, reflecting the bank’s ongoing dedication to enhancing the customer experience and delivering innovative banking solutions.

Acknowledgments and appreciation

Mr. Ahmed Al-Bahar stated: “On behalf of the Board of Directors, I extend my gratitude and appreciation to our shareholders and customers for their continued trust, to our employees for their dedication and sincere efforts, and to the regulatory authorities for their guidance and ongoing support.”