'Al-Khalij' Achieves 41.9 Million Dinars in Net Profit in 9 Months

With 9.1% growth and a 1.8% increase in operating revenues

Ahmed Al-Bahar:

Positive performance confirms the bank’s resilience and its commitment to implementing its strategic directions

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

Sami Mahfouz:

Net loans and advances rose by 7% while maintaining asset quality and credit discipline

Meeting the regulatory requirements necessary to transition to a Sharia-compliant bank represents a significant milestone

Gulf Bank announced its financial results for the nine months ended September 30, 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 last year. The bank also recorded operating revenues of KD 143.1 million, up 1.8% compared to the same period last year.

In a press release yesterday, the bank stated that for the third quarter ended September 30, it 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 last year.

The improvement in net profit for the first nine months was driven by a KD 3.0 million (2.7%) increase in net interest income, 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 a KD 5.7 million rise in operating expenses and a slight decline in non-interest income.

Regarding asset quality, the non-performing loans ratio stood at 1.2% as of September 30, compared to 1.4% in the previous year.

The bank continued to maintain a high coverage ratio for non-performing loans at 334%, including total provisions and collateral. Total credit provisions reached KD 252 million as of September 30, 2026, while the bank’s provisions under International Financial Reporting Standard 9 amounted to KD 163 million, indicating that the bank holds a healthy level of additional provisions.

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

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

Economic Resilience

Commenting on the financial results, Ahmed Al-Bahar, Chairman of the Board of Directors of Gulf Bank, said: “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 strength of our operations, 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 maintained 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.”

Concluding his remarks, Al-Bahar stated: “As we approach the end of 2026, we look forward to building on the progress achieved this year and continuing to implement 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 Sami Mahfouz said: “Our performance reflects the success of implementing our strategy and the strength of our 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 continuous growth of our balance sheet 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 strong asset quality 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 workstreams 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

• Net profit grew by 9.1% to KD 41.9 million

• Operating income increased by 1.8% to KD 143.1 million

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

• Non-performing loans ratio stood at 1.2%, with a coverage ratio of 334%

• Capital adequacy ratio was 15.7%, with a Tier 1 ratio of 13.7%

Operational Resilience and Strong Financial Position

Leading global credit rating agencies have reaffirmed 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. 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.

Innovative Banking Solutions

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. The bank 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 Gen Z” award, reflecting the bank’s ongoing dedication to enhancing the customer experience and delivering innovative banking solutions.