Al-Khalij posts 41.9 million dinars profit in 9 months

- Ahmed Al-Bahar:

- The positive performance underscores the resilience of the bank’s operations and its commitment to implementing its strategic directions.

- We are confident in the long-term outlook of the Kuwaiti economy and optimistic about the results of economic reforms.

- Sami Mahfouz:

- Our performance reflects the strength of Gulf Bank’s core banking business and its ability to achieve sustainable growth.

- We maintained business momentum by supporting the growth of corporate financing facilities and developing our digital services.

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 percent, compared to a net profit of KD 38.4 million during the same period in 2025. The bank also reported operating revenues of KD 143.1 million, an increase of 1.8 percent compared to the same period last year.

Regarding third-quarter results, Gulf Bank achieved a net profit of KD 14.4 million and operating revenues 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 was driven by a KD 3 million, or 2.7 percent, increase in net interest income, alongside an improvement in total provisions and impairment losses, which decreased by KD 6.9 million, or 24 percent, compared to 2025. This improvement was partially offset by a KD 5.7 million rise in operating expenses, as well as a slight decline in non-interest income.

Regarding asset quality, non-performing loans stood at 1.2 percent, down from 1.4 percent. The bank continued to maintain a high coverage ratio for non-performing loans at 334 percent, including total provisions and collateral.

Total credit provisions reached KD 252 million, while the bank’s provisions under International Financial Reporting Standard 9 (Expected Credit Losses) amounted to KD 163 million. This indicates that the bank holds an additional provision buffer of KD 89 million, significantly exceeding the IFRS 9 requirements.

Compared to December 31, 2025, total assets increased by 2.4 percent to KD 7.9 billion, while net loans and advances rose by 7 percent 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 percent, which is 270 basis points above the minimum regulatory requirement of 11 percent. The capital adequacy ratio stood at 15.7 percent, also exceeding the minimum regulatory requirement of 13 percent by 269 basis points.

Commenting on the financial results, Ahmed Al-Bahar, Chairman of the Board of Gulf Bank, said: “The bank delivered a positive performance during the first nine months of 2026, with net profit reaching KD 41.9 million, an increase of 9.1 percent compared to the same period in 2025. These results highlight the strength of our operations, our ability to navigate changes in the business environment, and our commitment to executing the bank’s strategic direction.”

He added: “During the third quarter, Kuwait continued its firm focus on advancing 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 qualifying 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.”

Al-Bahr stated: “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, forms a solid foundation for the next phase of Gulf Bank’s growth journey.”

Al-Bahr added: “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.”

For his part, Acting Chief Executive Officer Sami Mahfouz said: “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 contributed to supporting the steady growth of our public budget during the first nine months of 2026, with net loans and advances rising by 7 percent to reach KD 6.3 billion, and total assets increasing by 2.4 percent 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 an Islamic-compliant bank. This achievement reflects significant progress across various business lines 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, while simultaneously supporting business growth in the Bank’s key sectors.”

Leading global credit rating agencies have reaffirmed Gulf Bank’s strong financial position and operational resilience. Fitch Ratings maintained 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.

Gulf Bank continued to win prestigious awards in the third quarter of 2026, in recognition of its commitment to innovation and excellence in customer service. The Bank received several regional awards from Asian Banking & Finance, including ‘Best Loyalty and Rewards Programme’, ‘Innovation in Branches’, and ‘Best Product for Gen Z’, reflecting the Bank’s ongoing dedication to enhancing the customer experience and delivering innovative banking solutions.