Mr. Ali Al-Rashaid Al-Bader, Gulf Bank's Chairman

Kuwait " 20 April 2011: Gulf Bank today announced a net profit of KD 9.8 million for the first quarter of 2011, against KD 0.5 million for the first quarter of the previous year.

The Bank's operating profit amounted to KD 23.4 million for the first quarter of the year.  This compares to KD 44.3 million for the corresponding period of 2010 (including one-off profit of KD 25.3 million).

Commenting on these results, Mr. Ali Al-Rashaid Al-Bader, Gulf Bank's Chairman, said: "The Bank continued to improve its quarterly profits with good rates, reflecting the general improvement in the Bank's core banking and credit activities, and the general improvement in the national economic conditions.  The Bank capitalized on the positive impact of the commencement of the State of Kuwait's five-year development plan projects."

"By the end of the first quarter of this year, the Bank successfully covered, in full, its residual losses from 2008, and its irregular loan coverage exceeded 100%, while its capital adequacy ratio rose to 18.1%." Al-Bader continued.

"On the other hand, the Bank continued to implement its strategic plan by increasing the additional precautionary provisions by KD 20.1 million to reach KD 51.6 million, in line with its hedging plans, and in support of its financial position and ability to grow and expand." Al-Bader elaborated, expressing his aspirations for continuing improvement with growing rates in the forthcoming period.

"The Bank increased its local branch network by opening a new branch in Al-Zahra, bringing the network up to 54 branches, thus enhancing its competitive edge, and providing better customer service." Al-Bader concluded.