Al-Dousari: Gulf Bank Financial Positions remains strong, as all leading indicators moving in the right direction

• Gulf Bank’s NPL ratio of 0.9% is the lowest in the industry with coverage ratio of 615%
• Our customer loans increased by 10.4% to KD 4.8 billion compared to 2020
• We offer everything that a digital bank offers, opening an account within a minute the fastest in Kuwait

Kuwait, 15 February 2022: Deputy General Manager of Investor Relations at Gulf Bank, Dalal Al-Dousari, said that all of the Bank's profitability indicators witnessed an improvement in 2021, as the Bank achieved a net profit of KD 42 million, an increase of 46% over last year.

In an interview with CNBC Arabia, Al-Dousari indicated that the Bank achieved an increase in net interest income by 6% in 2021, while non-interest income (fees, commissions, and profits from foreign currency transactions) increased by 13%, while total provisions decreased by 26%.

She also stated that the non-performing loans ratio decreased to 0.9% in 2021, compared to 1.1% last year, which is one of the lowest ratios of non-performing loans in the banking sector. In contrast, the Bank's total credit provisions reached KD 300 million whereas IFRS 9 accounting requirements (i.e., ECL or expected credit losses) were KD 189 million, which means the Bank has very healthy excess provisioning level of KD 112 million, above and beyond what is required by the IFRS9 accounting requirements. Gulf Bank continues to have a significant non-performing loans coverage ratio of 615% including total provisions and collaterals.

Loan Book

when asked about the loan book growth, Al-Dousari said that the Bank’s loan book witnessed a significant improvement in 2021, as the loans and advances provided to customers increased to KD 4.8 billion, a growth of 10.4%compared to 2020. Both the retail and corporate loan portfolios has contributed to this growth, , which is much higher than the credit growth rate in the banking sector, which amounted to 6.6%.

Capital Position

On the other hand, Al-Dousari indicated that Gulf Bank has a solid capital, as the capital adequacy ratio reached 16.7%, above the regulatory minimum of 11.5% while the Tier 1 ratio reached 14.5%, which is above the regulatory minimum of 9.5%.

Digital Bank

Regarding whether Gulf Bank intends to obtain a digital bank license, Al-Dousari said that Gulf Bank offers everything that the digital bank would, noting that the Bank’s five-year strategy 2025 is mainly based on the digital transformation of all the Bank’s services, and strengthening the position of “Gulf Bank” as a bank for the future.

She indicated that the Bank launched the MX.3 digital platform to develop and digitize its treasury platform, in partnership with the international company "Murex", with the aim of developing and automating the Bank’s capital markets and treasury business. She also noted the Bank's success in developing its services with a new feature introduced in the mobile application and online banking, enabling Gulf Bank’s customers to open a bank account in just under one minute., making it the fastest account opening process in Kuwait.

Semi-Annual Dividends

Regarding the Bank's intention to distribute semi-annual dividends, post the Central Bank of Kuwait announcement in this regard, Al-Dousari said that Gulf Bank intends to implement this policy as part of its dividends distribution strategy.

She indicated that such a decision is a function of several procedures and requirements, including obtaining the necessary approvals of the extraordinary general assembly to amend the Bank's articles of association and the approval of the general assembly on the dividend distribution, as well as the approval of the Central Bank of Kuwait after reviewing the financial and technical requirements.

Al-Dousari also appreciated the keenness of the Central Bank of Kuwait in taking decisions and adopting policies that are in the best interest of stakeholders in the banking sector and the Kuwaiti market in general.

Enhance Customer Experience

Gulf Bank's vision is to be the leading Kuwaiti Bank of the Future. The Bank is constantly engaging and empowering its employees as part of an inclusive and diversified workplace in recognition of every employee’s role in delivering customer excellence and serving the community at large. With its extensive network of branches and innovative digital services, Gulf Bank is able to give its customers the choice of how and where to conduct their banking transactions, all while ensuring a simple and seamless banking experience.

Sustainability

Gulf Bank is committed to maintaining a robust sustainability program at the community, economic, and environmental levels through sustainability initiatives that are strategically selected to benefit both the country and the Bank. Gulf Bank supports Kuwait Vision 2035 “New Kuwait” and works with the different relevant parties to achieve it.