Gulf Bank reports net profit of KD 27.4 million in the first half
2.7% growth in operating income for the bank, reaching KD 94.3 million
Ahmed Al-Bahr: Proud of performance despite challenging operating environment and regional tensions
Sovereign and local debt issuances contribute to strengthening funding resilience
Implementing our strategic priorities and capitalizing on development opportunities in Kuwait
Sami Mahfouz: Growth in loans and advances demonstrates the bank’s ability to expand its business
Decline in provisions underscores the robustness of the financing portfolio and effective risk management
KD 8 billion in total assets as an indicator of growth in our core business
Gulf Bank announced its financial results for the first half ended June 30, reporting a net profit of KD 27.4 million, an increase of KD 3.4 million or 14.1% compared to KD 24.0 million in the first half of the previous year. The bank also recorded operating income of KD 94.3 million, representing a 2.7% year-on-year increase.
The bank stated in a press release that it achieved a net profit of KD 18 million and operating income of KD 49.2 million in the second quarter ended June 30, representing growth of 22.6% and 2.9%, respectively, compared to the same period last year.
The bank attributed the improvement in first-half net profit 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, 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 profits 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% year-on-year, contributed to strengthening the bank’s net profit for the first half of 2026.
Regarding asset quality, the non-performing loans ratio stood at 1.2% as of June 30, compared to 1.4% at the end of the previous year. The bank continued to maintain a strong non-performing loans coverage ratio of 312%, including total provisions and collateral. Total credit provisions reached KD 251 million as of June 30, 2026, while provisions under International Financial Reporting Standard 9 amounted to KD 177 million, indicating that the bank holds an additional provision buffer of KD 74 million.
Compared to results as of December 31 last year, 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.
Economic Resilience
Commenting on the financial results, Ahmed Al-Bahar, Chairman of the Board of Directors of Gulf Bank, said, “We are proud of the performance the bank achieved during the first half of the current year, with a positive increase of 14.1% compared to the same period last year. These encouraging results come amid an operational environment marked by challenges and regional tensions, and they reflect the strength of our core banking activities, the robustness of our financial position, and our ability to execute our strategy efficiently and steadily.”
He added, “The first half of the year has underscored the importance of maintaining solid financial foundations and adopting a prudent approach to growth. Despite ongoing regional challenges, the Kuwaiti economy has maintained a considerable degree of stability, supported by the Central Bank’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.”
He noted 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 state’s general budget project for the current fiscal year reflects the government’s commitment to continuing capital expenditure, with approximately KWD 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 regional developments, Al-Bahar stated, “We continue to closely monitor geopolitical developments. While regional tensions may cast a shadow on sentiment and business confidence, the Kuwaiti banking sector still enjoys strong capital and high liquidity. We remain hopeful that current conflicts will find a peaceful resolution, contributing to greater regional stability and enhancing economic prospects.”
He added that the bank will continue in the second half of the year to focus on implementing our strategic priorities and capitalizing on the promising opportunities created by the ongoing development trajectory in the State of Kuwait. Based on our strong financial position and prudent business management approach, we are well-positioned to continue delivering sustainable, long-term value to our shareholders.
Momentum of growth in business
Speaking on the bank’s operational performance, Acting Chief Executive Officer Sami Mahfouz stated: “The bank achieved strong business growth during the first half of the year, with net loans and advances rising by 7.6% year-to-date. This growth was driven by a disciplined risk management approach, which was 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.”
He added: “Total bank assets surpassed 8 billion dinars since the beginning of the year, supported by continued financing activities across key sectors. This outstanding performance, alongside a supportive operating environment, provides a solid foundation for further growth. Furthermore, we have continued to diversify our funding sources to support growth and strengthen the bank’s financing structure. At the same time, the ongoing 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 position us excellently to continue supporting our clients and capturing sustainable growth opportunities.”
Mahfouz noted: “In parallel with the momentum in our business activities, we have continued to make progress in our preparations for transitioning to Islamic banking, subject to obtaining the required regulatory approvals and shareholder consent. The previous period saw tangible progress across several key tracks, including governance, products, systems, and operational readiness, which prepares the bank to confidently move to the next stage of its transformation journey.”
Prestigious Ratings
Global credit rating agencies reaffirmed the financial strength and operational capability of Gulf Bank. Fitch Ratings confirmed 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. Additionally, Capital Intelligence 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.
Top Rankings and Global Awards
● Forbes magazine ranked the bank among the largest 100 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 ranking.
● Gulf Bank was awarded two prestigious accolades by the global magazine International Business for 2026: Best Corporate Banking App in the Middle East, and Excellence in Customer Experience in the Banking Sector.
● Gulf Bank secured two distinguished awards in the categories of “Digital Banking Innovation” and “Financial Services with Social Impact,” as part of the Global Brands magazine awards for 2026.
Financial Indicators for the First Half
- 14.1% increase in net profits to KD 27.4 million
- 2.7% growth in operating income to KD 94.3 million
- 13.3% rise in net fees and commissions
- 7.6% growth year-to-date in net loans and advances
- 1.2% non-performing loans ratio
- 312% loan coverage ratio, including total provisions and guarantees
