Gulf Bank's profits rise 14.1% to KD 27.4 million in the first half of 2026
Gulf Bank (S.A.K.) 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 first half of 2025, which recorded a net profit of KD 24.0 million. The bank also achieved 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.
For the second quarter ended June 30, 2026, Gulf Bank reported 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 was driven by a 1.0% increase in net interest income, alongside strong growth of 9.6% in non-interest income, particularly in net fee and commission income, which 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 prior year, contributed to enhancing 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, compared to 1.4% in the same period last year. The bank continued to maintain a strong coverage ratio for non-performing loans at 312%, including total provisions and collateral.
Total credit provisions amounted to KD 251 million as of June 30, 2026, while the bank’s provisions under the requirements of International Financial Reporting Standard 9 (Expected Credit Losses) reached KD 177 million. This indicates that the bank holds a healthy level of additional provisions totaling 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 6.0 billion, and total shareholders’ equity stood at KD 846 million.
The bank’s Tier 1 capital ratio reached 13.8%, which is 2.8 percentage points above the minimum regulatory requirement of 11%, while the capital adequacy ratio stood at 15.8%, also exceeding the minimum regulatory requirement of 13% by 2.8 percentage points.
Commenting on the financial results for the first half of 2026, Mr. Ahmed Mohammed Al-Bahar, Chairman of the Board of Directors 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 amid an operational environment filled with challenges and regional tensions since the beginning of the year, and they reflect 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 underscored the importance of maintaining a solid financial foundation and adopting a prudent approach to growth. Despite ongoing regional challenges, the Kuwaiti economy has maintained a good degree 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 a clearer outlook for the business community and financial institutions. He pointed out that sovereign debt issuances, both in local and international markets, represent an important step toward strengthening the resilience of 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. Furthermore, the draft general state budget 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 sustained investments in strategic infrastructure projects are expected to stimulate economic activity and create promising financing opportunities for the banking sector.”
Regarding current regional developments, Mr. Al-Bahr stated: “We continue to closely monitor geopolitical developments. While regional tensions may cast a shadow on sentiment and business confidence, the Kuwaiti banking sector remains well-capitalized and highly liquid. We all hope that the current conflicts will find a peaceful resolution, contributing to greater regional stability and enhancing economic prospects.”
Concluding his remarks, Mr. Ahmed Al-Bahr 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 ongoing development journey in the State of Kuwait. Based on the strength of our financial position and our prudent business management approach, we are well-positioned to continue delivering sustainable, long-term value to our shareholders.”
Commenting on Gulf Bank’s operational performance, Acting Chief Executive Officer Mr. Sami Mahfouz said: “Gulf Bank 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, reflected in a 24.6% decline 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 surpassed KD 8 billion since the beginning of the year, supported by the continued financing activities across key sectors. This outstanding performance, along with a supportive operating 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 across 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.”
Mr. Al-Mahrouqi continued, “In parallel with the momentum driving our operations, we have continued to make progress in our preparations for the transition to Islamic banking, subject to obtaining the required regulatory and shareholder approvals. The previous period saw tangible progress across several key tracks, including governance, products, systems, and operational readiness, positioning the Bank to confidently move to the next phase of its transformation journey.”
Global credit rating agencies reaffirmed Gulf Bank’s financial strength and operational capability. 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 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.
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.
According to the global Brand Finance institution, Gulf Bank is ranked among the top 10 most valuable brands in Kuwait for 2026, with a brand value of $237 million.
Gulf Bank was awarded two prestigious honors by 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.
