Gulf Bank's Profits Rise 9.1% to KD 41.9 Million in First Nine Months of 2026

Gulf Bank (K.S.C.) announced its financial results for the nine months ended September 30, 2026, recording a net profit of 41.9 million Kuwaiti Dinars (KWD), an increase of 3.5 million KWD, or 9.1%, compared to a net profit of 38.4 million KWD during the same period in 2025. Gulf Bank also reported operating revenues of 143.1 million KWD 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 14.4 million KWD and operating revenues of 48.8 million KWD, 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 3.0 million KWD (2.7%) increase in net interest income, alongside an improvement in total provisions and impairment losses, which decreased by 6.9 million KWD, or 24%, compared to 2025. This improvement was partially offset by a 5.7 million KWD rise in operating expenses, 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 NPLs at 334%, inclusive of total provisions and collateral.

Total credit provisions amounted to 252 million KWD as of September 30, 2026, while the bank’s provisions under International Financial Reporting Standard 9 (Expected Credit Losses) reached 163 million KWD. This indicates that the bank holds a healthy level of excess provisions amounting to 89 million KWD, significantly exceeding the IFRS 9 requirements.

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

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.

Commenting on the financial results for the first nine months of 2026, Ahmed Mohammed Al-Bahar, Chairman of the Board of Directors of Gulf Bank, stated: “Gulf Bank delivered positive performance during the first nine months of 2026, with net profit reaching 41.9 million KWD, an increase of 9.1% compared to the same period in 2025. These results highlight the robustness of our business, our ability to navigate changes in the business environment, and our commitment to implementing the bank’s strategic direction.”

He added: “During the third quarter, Kuwait continued its firm focus on driving the economic reform agenda and achieving its long-term national priorities, despite uncertainties associated with regional conflicts. We are optimistic about the momentum achieved during this period, particularly the progress 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 housing needs in Kuwait, stimulating market activity, and creating new opportunities for the banking sector in the coming years.”

Mr. Ahmed Mohammed 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 advancing the implementation of the Bank’s key strategic initiatives. The robustness of our public budget, alongside significant achievements across several priorities, lays a solid foundation for the next phase of Gulf Bank’s growth journey.”

For his part, Acting Chief Executive Officer, Mr. Sami Mahfouz, stated: “Our performance reflects the success of implementing our strategy and the strength of Gulf Bank’s core business in achieving sustainable and tangible growth. The Bank has 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 have supported the continuous growth of our public budget during the first nine months of 2026, with net loans and advances rising by 7.0% to KD 6.3 billion, and total assets increasing by 2.4% to KD 7.9 billion. This expansion was achieved while maintaining asset quality strength and credit discipline.”

He added: “The third quarter marked an important milestone in Gulf Bank’s strategic transformation journey. Following the completion of 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 the next steps of the transformation process, alongside supporting business growth in the Bank’s key sectors.”

Leading global credit rating agencies renewed their recognition of Gulf Bank’s strong financial position and operational resilience. 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.

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