Chairman Omar Kutayba Alghanim

Kuwait- 9 March 2015: Gulf Bank today held its Annual General Meeting (AGM) and Extraordinary General Meeting (EGM) at the Jumeirah Hotel, Kuwait and approved the company's audited financial results for the year ended 31 December 2014.

Gulf Bank 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 was 16% 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 general assembly endorsed the recommendation of Gulf Bank's Board of Directors for a stock dividend of 5 per cent (5 shares for every 100 shares held).

On completion of the three year term of the existing board of directors, Gulf Bank announced the election of its revised board of directors. The reconstituted Board signals the continued development of Gulf Bank as one of the most significant financial institutions in Kuwait.

The revised Board of Directors consists of: Chairman Omar Kutayba Alghanim, Deputy Chairman, Ali Morad Behbehani, and the other Directors are: Sayer Bader Al-Sayer,  Khaled Faisal Ali Al Mutawa, Bader Nasser Al-Kharafi, Jasem Mustafa Boodai, Bader Abdulmohsen El-Jeaan, Omar Hamad Yousef Al-Essa, Farouk Ali Bastaki and First Alternate: Rashid Nader Hamad Al Essa, and Second Alternate: Bader Ali Abdullah Banyan.

Mr Omar Kutayba Alghanim, said: "I am very pleased to report that over the past year we have maintained and have even accelerated the progress we have seen in previous years. 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 our Wholesale Banking Group, we will reinforce our advisory and products capabilities. In Retail, products and newer channels are being upgraded. We will execute under strict risk criteria and as per our policies that have helped make Gulf Bank safe and sound.  In doing so, we have continued to focus on developing our customer services, invest in our employees, our systems and our branch network and maintain our promise to customers to deliver the best and fastest banking services in Kuwait.

"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 was also recognised 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, capitalisation, solid revenue generating capacity and sound risk management systems and practices.

"Our Wholesale Banking Group performed in-line with the market, and we continue to streamline our operations there to deliver a faster and more efficient customer service.  During 2014, as part of our new strategic approach, we also reorganised our Corporate Banking Group to focus on local companies and  market segments, such as the construction sector, and we are well placed to support the 'Kuwait Development Plan' with financing of key infrastructure, healthcare and oil sector projects, amongst others.  At the same time we refined our diversified corporate product suite so that we are now being able to offer clients a more comprehensive range of products and services to better serve current market needs.

"I am also proud to add that we have continued to increase our branch network, which now stands at 59 branches across Kuwait. In doing so, we will be ever closer to our customers, and better placed to deliver them the best possible banking services in Kuwait.  It was pleasing that we continued to be acknowledged by our industry peers for service excellence with the bank receiving several awards over the course of 2014, including 'Bank of the Year' from Arabian Business, 'Best Retail Bank in Kuwait' award from International Finance Magazine, 'Best Domestic Retail Bank' and 'Best Human Resources Development' awards from Banker Middle East, 'Best Customer Experience Overall Branch' from Ethos Integrated Solutions, 'Best Domestic Payments and Cash Management Bank in Kuwait' from Asian Banker, 'Best Car Loan' and 'Best Customer Service (Retail)' from Banker Middle East, 'STP' Award from Citibank and 'HR Professional of the Year' award at the 6th Annual MENA HR Excellence Awards. In the long term we remain committed to growing our business and investing in every aspect of our operations to produce improvement right across the board and deliver strong performance for you, our shareholders.

"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 customised 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.

"Our progress could not have taken place without the dedication of our staff and I would like to particularly thank them for their immense efforts.  I am also very grateful to our customers for their faith and trust, to our Board of Directors for its wisdom and support and to you, our shareholders for your continued loyalty as we continue our development."