Kuwait – 28 January 2015: Gulf Bank today announced an operating profit before provisions of KD 106.8 million for the year ending 2014 and a Net profit at KD 35.5 million, which is a 10% increase over 2013. At the end of December 2014, the Bank's total assets were KD 5,331 million. There has been a significant gain in market share in loans, mainly attributable to the 23% growth in retail loans. Overall, this resulted in a growth of 9% vs. the 6% market growth. The growth in low cost deposits was16% increasing the total deposits at the bank to KD 4,340 million. Total shareholders' equity increased to KD 511 million from KD 483 million in 2013.

The Bank maintained its positive trend of reducing the non-performing loan ratio which decreased from 6.5% at the beginning of the year to 3.2% by December 2014 and increased the total coverage ratio of non-performing loans to 266%.

The Gulf Bank's Board of Directors have recommended a stock dividend of 5 per cent (5 shares for every 100 shares held), for approval at the Shareholders meeting.

Commenting on the results, Mr. Omar Kutayba Alghanim, Gulf Bank's Chairman said: "Gulf Bank is today a great and strong bank. It has overcome the difficult times in an admirable way. The strategy is clear and the mandate of the Board is to grow. In wholesale, we will reinforce our advisory and products capabilities. In Retail, products and newer channels are being upgraded. Everything we do will be upgraded under strict risk criteria, as per our policies that have helped make Gulf Bank safe and sound."

Mr. Cesar Gonzalez-Bueno, Gulf bank's CEO said: "I am pleased to report that we have continued the progress of previous years, even accelerated it. The Bank's Capital Adequacy Ratio per the new Basel III regulations is at 15.5% against the regulatory requirement of 12%. The bank is also strongly placed with a leverage ratio of 8.25% against the regulatory minimum of 3%. Our network has grown to 59 branches across Kuwait, the second largest in the country and we we're proud to be the first bank to open a branch in the new areas of Jaber Al Ahmad and Qairawan. This is another sign of our desire to be closer to our customers. As we move through 2015, we will maintain financial discipline and the policy of investing in the bank's infrastructure to ensure we have robust internal controls in place at all levels of the operations."

During 2014, the Bank continued the focus on its core competence of commercial and retail lending within the Kuwaiti market, and on strengthening its domestic franchise. The strategy has shifted to risk adjusted growth following a period starting in 2009 during which the focus was on strengthening the balance sheet and managing down a substantial portfolio of impaired loans. The Bank continued to make progress during 2014 in strengthening systems, controls, enhancing risk management, corporate governance and also in improving product offerings and delivery channels.

This progress is also being recognized by the international credit rating agencies. During 2014, Moody's upgraded Gulf Bank long term rating to Baa1 from Baa2 and the Stand Alone Financial Strength rating to D from D-, maintaining a positive outlook. Standard Poor's also affirmed the Bank's long-term credit rating at BBB+ with a positive outlook. Both agencies, in their assessments, affirmed the Bank's asset quality, capitalization, solid revenue generating capacity and sound risk management systems and practices.

Significant upgrades were made within the IT department to both improve the existing infrastructure and upgrade the technology. A strategic plan aimed at delivering a robust capability in terms of Infrastructure, Governance, Solution Delivery and Security Framework was also launched.

Gulf bank continues to invest in youth, entrepreneurship and talent development in the local community through its Corporate Social responsibility initiatives by participating in programs such as INJAZ local and regional competitions, the Annual gathering of National Union of Kuwaiti Students - USA branch, as well as a wide variety of job shadowing programs. Our annual sponsorship of the memorial journey for pearl diving continues to strengthen our position as an integral part of the Kuwaiti society. Gulf Bank has numerous staff volunteers working together with our youth on various development programs throughout the year.

With our relentless focus on talent; Gulf Bank places great value on its Human Resources and continuously delivers exceptional initiatives that help the progress and development of its staff. This was culminated with the launch of Durrat Al Khaleej training center early 2014 and the recent launch of a customized Graduate Development Program in collaboration with the Institute of Banking Studies (IBS). The program focuses on the development of local talent and aiming at creating a pool of holistic bankers and leaders of the future.

During 2014, the bank was honored with prestigious awards and accolades', including 'Bank of the Year' award from Arabian Business, 'Best Retail Bank in Kuwait' award from International Finance Magazine, the 'Best Domestic Payments and Cash Management Bank in Kuwait' by Asian Banker, 'Best Domestic Retail Bank' and 'Best Human Resources Development' awards for 2014 from Banker Middle East, 'HR Professional of the Year' award for the private sector at the 6th Annual MENA HR Excellence Awards, the 'Best Customer Experience Overall Branch in Kuwait' award from Ethos Integrated Solutions (Ethos) at the 10th Annual Customer Experience Benchmarking Index and STP Award from Citibank.

Mr. Omar Kutayba Alghanim, Gulf Bank's Chairman concluded: "I can confidently say that Gulf Bank has culminated its transition and has started a new path after completing its recovery. It is now time to thank our Customers, employees, Central Bank, Board of Directors, Shareholders and Public Authorities for supporting this successful turnaround that has been meticulously executed. Far seem today the difficult times when our NPL's reached 30%. Now we have all the elements in place to grow better and faster, as we have started to do in 2014 when we launched significant initiatives that will mature and be announced during the course of 2015. We have the , governance, staff , financials, risk procedures, systems and clarity of ideas to execute. During 2015 Gulf Bank will culminate projects that will help us to serve our clients better, and provide better results."

Mr. César González-Bueno            Gulf Bank's Chief Executive OfficerMr. Omar Kutayba AlghanimGulf Bank's Chairman