Kuwait, 5 February, 2008: Gulf Bank, Kuwait’s second largest commercial bank, has reported a record net profit of USD477.8 million for 2007, an increase of 23% over the previous year’s results. The bank reports that operating income rose 27% to USD716.4 million while total assets grew by more than 25% to surpass USD18.5 billion for the first time. Gulf Bank again delivered record earnings per share in 2007, rising nearly 23% to 44.7cents. The Board of Directors has recommended a cash dividend of 23.8 cents and 15% bonus share issue, a return of 19% for 2007. Customer deposits grew by 12% to USD11.7 billion, while the customer loan portfolio increased by 29% to USD12.0 billion. Strong contributions to earnings and profit growth were delivered across all major business lines. Commenting on another hugely successful year, Mr. Bassam Y. Alghanim, Gulf Bank’s Chairman & Managing Director, said: ‘In 2007 Gulf Bank’s unique position as one of the most efficient Banks in the region combined with our diversified revenue streams positioned us to continue our superior growth and deliver excellent returns to our shareholders. ‘The expertise and skills of our management team alongside a healthy economic environment have contributed towards the significant revenue growth and we document another record breaking year at Gulf Bank. ‘This is the Bank’s eighth consecutive year of record earnings and profitability and is based upon a corporate culture that combines superb teamwork and a passion for excellence among our staff to continually deliver the best possible service & product range. Our team has a single minded commitment to focus on delivering world class banking services to the Kuwaiti market.’ The quality and commitment of the Gulf Bank team received international recognition in 2007, achieving three awards from leading international financial magazine Global Finance for being the Best Bank in Kuwait, Best Internet Bank in Kuwait and Best Foreign Exchange Bank, from Banker Middle East for being the Best Retail Bank in the Middle East for the 3rd consecutive year and from Asian Banker magazine for being the Best Retail Bank in Kuwait. Gulf Bank CEO Louis Myers explained that 2008 is set to be another year of growth and high performance for the bank. He said: ‘We expect economic conditions to be favorable to support our ambitious goals for 2008. This year’s plan includes continued investment in new products and distribution channels. In addition, we will focus on building the skills and talent of our staff to support our desire to provide the highest quality service to our clients.’ ‘The Retail Banking Group continued to demonstrate growth in the market with an expansion of its branch network to 41 branches in 2007 and a commitment to our split-shift system of branch opening hours ‘ allowing our customers to bank at their convenience,’ added Mr. Alghanim. ‘Our Corporate Banking division meanwhile has benefited from a clear corporate focus to maintain our position as an acclaimed ‘businessman’s bank’. Our International Banking Group has emerged as an important source of business and has permitted us to extend our portfolio of activities into the wider GCC region. This aspect of the bank has contributed significantly to diversifying our deposit base and building relationships with large multi-national companies interested in Kuwait’s robust economy.’ Gulf Bank CEO, Louis Myers added, ‘2008 will leverage this momentum into a broader range of more sophisticated financial management products for our corporate clients and greater convenience and access through an expanded branch and ATM network along with further enhancements to our online banking service.’ Gulf Bank re-affirmed its position as a leading Kuwaiti employer, once again winning the Localization Award from the GCC Council of Ministers for Social Affairs and Labour, that was presented to the Bank in Riyadh in November 2007, for the 3rd consecutive year, for achieving the highest rate of Kuwaitization of any company in the country’s private sector and for its investment in the development of the skills and abilities of Kuwaitis. Gulf Bank is one of the highest rated banks in the region. It is one of only seven banks in the GCC assigned an ‘Aa3’ long-term foreign currency deposit rating from Moody’s Investors Service and enjoys strong ratings from Fitch Rating and Capital Intelligence (‘A’) and Standard & Poor’s (‘A-’). ‘These ratings reflect the excellence of our financial performance, the quality of our assets and our employees and the fact that we are undertaking a clear and focused business strategy for the development of the Bank. Today Gulf Bank is a solid financial institution poised for continued growth in our market. ’Our 2007 results mean that Gulf Bank can look to the future with great confidence. We will continue to bring professionalism, flexibility and expertise to all our operations and banking divisions and look forward to a successful year in 2008 where we will continue to offer the highest levels of services to our customers, contribute to Kuwait’s economic growth and deliver outstanding returns to our shareholders,’ Mr. Alghanim concluded.