Gulf Bank records KD 38.4 million in net profit for first 9 months of 2025

29/10/2025 05:07 AST

Gulf Bank KSCP announced its financial results for the first nine months ending September 30, 2025. The Bank reported a net profit of KD 38.4 million for the first nine months of 2025, a slight decline of KD 1.8 million or 5 percent when compared to 2024 first nine months net profit of KD 40.2 million.

Additionally, Gulf Bank recorded an operating income of KD 140.5 million for the first nine months of 2025, representing a decline of 4 percent compared to the same period last year. Moreover, operating profit before provisions and impairments was KD 69.0 million, representing a decline of 12 percent compared to the first nine months of 2024. For the third quarter ending September 30, 2025, Gulf Bank reported a net profit of KD 14.3 million, reflecting a year-on-year increase of KD 2.3 million or 19.4 percent.

Financial performance
The decline in net profit for the first nine months of 2025 is attributed to the decline in net interest income of KD 8.0 million or 6.8 percent, coupled with an increase in operating expenses of KD 4.1 million or 6.1 percent, compared to the same period of 2024. However, these declines were partially offset by an enhancement in non-interest income of KD 2.5 million or 8.7 percent, and the improvement in total provisions and impairments, which declined by KD 7.7 million or 21.1 percent year-on-year, reaching KD 28.8 million for the first nine months of 2025. As for asset quality, the non-performing loans (NPL) ratio was 1.4 percent as of September 30, 2025, compared to the prior year level of 1.3 percent. Additionally, the Bank continues to have significant non-performing loans coverage ratio of 324 percent including total provisions and collaterals.

Total credit provisions as of September 30, 2025 reached KD 271 million whereas IFRS 9 accounting requirements (i.e., ECL or expected credit losses) were KD 172 million. As a result, the Bank has a healthy excess provision level of KD 99 million, above and beyond what is required by IFRS 9 accounting requirements.

Compared to December 31, 2024, total assets increased by 1.5 percent to KD 7.6 billion, whereas net loans and advances increased by 4.1 percent to KD 5.7 billion. On the other hand, total deposits stood at KD 5.6 billion and total Shareholders' equity reached KD 839 million.

The Bank's regulatory Tier 1 ratio of 14.3 percent was 2.3 percent above the regulatory minimum of 12 percent and the Capital Adequacy Ratio (CAR) of 16.4 percent was 2.4 percent above the regulatory minimum of 14 percent.

Steady progress
Commenting on the financial results for the first nine months of 2025, Gulf Bank Chairman Ahmad Mohammad Al-Bahar stated: "Gulf Bank's performance over the first nine months of the year demonstrates continued progress in strengthening the Bank's financial position. This was driven by steady loan growth, stable asset quality and a robust capital base."

He continued: "The broader operating environment in Kuwait has become more favorable. The Central Bank of Kuwait's recent decision to lower the discount rate to 3.75 percent, following the Federal Reserve's 25-basis-point interest rate cut, is expected to foster a more supportive climate for credit expansion and stimulate business activity. Furthermore, Kuwait's successful return to global debt markets with an issuance of a $11.25 billion sovereign bond was met with a very strong investor demand. This achievement, combined with the positive momentum generated by national development projects, is set to further enhance credit conditions and bolster business confidence in the local economy."

He added:" Alongside this strong backdrop, we are making excellent progress on our transformation journey toward becoming a Sharia-compliant institution. Following the most recent Central Bank of Kuwait's preliminary approval to begin Sharia-compliant conversion activities, we have commenced detailed work in alignment with the regulatory framework. The Bank continues to coordinate closely with the Central Bank of Kuwait and relevant stakeholders to ensure a smooth and compliant transition, while maintaining business continuity and customer service excellence."

Al-Bahar concluded: "We enter the final quarter of 2025 with a focus on advancing our strategic transformation, sustaining healthy loan growth and maintaining operational excellence. On behalf of the Board, I thank our shareholders, employees and customers for their continued trust. I also extend our appreciation to the Central Bank of Kuwait and the regulatory authorities for their ongoing guidance."

Operational discipline
Gulf Bank Acting Chief Executive Officer, Sami Mahfouz, stated: "Through our strategic focus and deep-rooted client relationships, we have successfully capitalized on emerging opportunities to drive steady growth. As a result, our loan book has expanded by 4.1 percent year-to-date, reaching KD 5.7 billion for the third quarter of 2025. This growth has been primarily driven by a strong client demand and our balanced approach to credit origination." Mahfouz added: "Customer centricity remains at the heart of Gulf Bank's strategy, driving continuous enhancement of our digital capabilities and cybersecurity framework."

Turning to the Bank's upcoming Islamic conversion, he added: "As we prepare for our conversion to a Sharia-compliant institution, we are focused on building internal readiness across all levels of the organization. Our talent development programs are equipping employees with the knowledge and skills required for the transition, while we work closely with leading technology partners to ensure systems compatibility and readiness in line with the Central Bank of Kuwait's requirements."

Strategic merger track
Gulf Bank continues its strategic evaluation of a potential merger with Warba Bank. During the quarter, Gulf Bank appointed independent financial and legal advisors to conduct a detailed review and assessment under the supervision of the Board of Directors and relevant regulators. Any future developments will be announced in accordance with disclosure requirements.

Recognitions
Gulf Bank's achievements during the year were recognized through several international awards that highlighted its progress in digital innovation and sustainability. Moreover, Gulf Bank's credit ratings remain among the strongest in the domestic banking sector, reaffirming its solid financial position, strong capitalization and prudent risk management. Fitch Ratings assigned a Long-Term Issuer Default Rating (IDR) of 'A' with a Stable Outlook, while Moody's rated long-term deposits at 'A3' with a Stable Outlook. Capital Intelligence affirmed a Long-Term Foreign Currency rating for the Bank of 'A+' with a Stable Outlook, further highlighting the Gulf Bank's stability and disciplined risk governance.

Key financial indicators for the first nine months of 2025:

1.First nine months 2025 net profit of KD 38.4 million.
2.First nine months 2025 operating income of KD 140.5 million.
3.Net loans and advances grew by 4.1 percent year-to-date to reach KD 5.7 billion.
4.Non-performing loan ratio as of September 30, 2025 was 1.4 percent, with a significant non-performance loan coverage ratio of 324 percent including total provisions and collaterals.
5.Capital ratios as of September 30, 2025, Tier 1 ratio was 14.3 percent and Capital Adequacy Ratio (CAR) was 16.4 percent, both above regulatory minimum requirements.

Kuwait Times