Ahmad Mohammad Al-Bahar:

• 2024 was a year of notable progress for Gulf Bank, defined by our ability to deliver on our strategic objectives.
• Our prudent risk management and operational excellence have solidified our position as a trusted financial partner and a pillar of Kuwait’s financial ecosystem.
• We have resolved several legacy-loan challenges, substantially improving our asset quality.
• We will continue to pursue with our intention to explore the feasibility of transforming Gulf Bank into a Sharia-compliant Bank, aiming to achieve sustainable growth to our stakeholders.

Waleed Khaled Mandani:

• We are proud of the significant progress we've made in enhancing our operational capabilities and delivering seamless customer experiences.
• A remarkable success was achieved in reducing costs and optimizing efficiencies leading to streamlined processes and sustainable results.
• 2024 witnessed the commencement of operations at our fully owned investment arm, “Invest GB”, with a capital of KD 10 million.
• The reopening of our newly designed eco-friendly branches across Kuwait enhances the client experience while contributing to a greener future.

Kuwait City, February 10, 2025 – Gulf Bank K.S.C.P. (“Bank”) announced its financial results for the full year ending 31 December 2024. The Bank reported a net profit of KD 60.2 million, reflecting a decline of KD 11.0 million or 15.5% compared to a net profit of KD 71.2 million for the same period in 2023.

Earnings per share for the year were 16 fils, and the Board of Directors is recommending a cash dividend distribution of 10 fils per share, representing a 63% cash payout ratio. In addition, a 5% bonus share distribution is proposed, subject to shareholder approval at the Annual General Meeting scheduled for March 2025.

Furthermore, Gulf Bank recorded an operating income of KD 199.3 million for the full year 2024, marking an increase of 4.8% compared to the previous year. Operating profit also saw a rise, reaching KD 106.7 million, reflecting a growth of 3.2% compared to 2023.

The decline in net profit for the full year of 2024 is primarily attributed to an increase in total provisions and impairments, which increased by KD 14.9 million for the full year compared to the same period last year. Nevertheless, in the fourth quarter the total provision cost has significantly decreased compared to both the previous quarters of 2024 and the same period last year.

Now looking at the financial performance of the fourth quarter of 2024, the Bank reported a net profit of KD 20.0 million, an increase of 14.8% over the fourth quarter of 2023. Operating income for the mentioned period was KD 53.3 million, an increase of 6.3% compared to the same period of last year.

The Bank's prudent risk management approach has effectively mitigated risks and maintained the quality of its loan portfolio. As of 31 December 2024, the Bank’s non-performing loans (NPL) ratio stood at 1.3%, compared to 1.2% at the end of the previous year. Additionally, the Bank continues to maintain a robust NPL coverage ratio of 340%, including total provisions and collateral.

As of 31 December 2024, total credit provisions reached KD 270 million, whereas IFRS 9 accounting requirements (i.e., ECL or expected credit losses) were KD 177 million. This results in a substantial excess provision level of KD 94 million, over and above what is mandated by IFRS 9 accounting requirements.

In comparison to 31 December 2023, Gulf Bank’s total assets increased by 4.3% to reach KD 7.5 billion, with net loans and advances rising by 5.2% to KD 5.5 billion. Additionally, total deposits grew by 4.3% to reach KD 5.6 billion, while shareholders’ equity increased by 2.1% to reach KD 834 million for the year ended 2024.

The Bank’s capital position remains robust, supported by strong internal capital generation. As of 31 December 2024, the Bank’s regulatory Tier 1 capital ratio stood at 15.2%, exceeding the regulatory minimum of 12% by 3.2%. Additionally, the Capital Adequacy Ratio (CAR) was 17.3%, surpassing the regulatory minimum of 14% by 3.3%.

Robust Results

Commenting on the financial results, Gulf Bank Chairman Mr. Ahmad Mohammad Al-Bahar stated: “2024 was a year of notable progress for Gulf Bank, defined by our ability to deliver on our strategic objectives while navigating a complex economic landscape. Despite global uncertainties and local challenges, our prudent risk management, operational excellence, and commitment to innovation have solidified our position as a trusted financial partner and a pillar of Kuwait’s financial ecosystem.”

He added: “I am pleased with our performance for the year 2024. We have addressed and resolved several legacy-loan challenges, which has substantially improved our asset quality allowing capacity for sustainable growth and increased stakeholder value.”

Operational Achievements

Gulf Bank’s operational advancements in 2024 were significant. The completion of Phase II of its core banking system upgrade has positioned the Bank to offer more agile, customer-focused services, setting a benchmark in operational efficiency. This system implementation has improved internal processes and elevated the customer experience by enabling faster and more reliable service delivery.

The launch of Gulf Bank’s enhanced mobile banking application is another highlight of the year. With a state-of-the-art interface and expanded features, the app empowers customers to manage their finances securely and conveniently, reflecting the Bank’s dedication to innovation and customer satisfaction.

In private banking, Gulf Bank introduced a refined identity rooted in three core principles: long-term wealth growth, asset protection, and seamless wealth transfer. This initiative redefines the private banking experience, ensuring that clients receive personalized, comprehensive financial solutions aligned with their aspirations.

Gulf Bank also reinforced its commitment to SMEs by enhancing its exclusive digital portal, which offers a wide array of services, including credit facilities, salary transfers, and payment gateways. Through a partnership with Omnifintec, the Bank further expanded its suite of financial solutions tailored to the unique needs of SMEs, reinforcing its role as a key enabler of Kuwait’s economic development.

Commenting on the operational performance of Gulf Bank, Acting Chief Executive Officer Mr. Waleed Khaled Mandani said: “Reflecting on 2024, we are proud of the significant progress we've made in enhancing our operational capabilities and delivering seamless customer experiences. This year, Gulf Bank achieved several key milestones, marked by the completion of Phase II of our core banking system upgrade and the commencement of operations at Invest GB, our fully owned investment arm, with a capital of KD 10 million. Additionally, we have achieved a meaningful success in reducing costs and optimizing efficiencies which has contributed to streamlining processes and delivering sustainable results. By Embracing a mindset of continuous optimization, we are dedicated to making this principle a lasting part of our organizational culture. Furthermore, the Bank continues to implement its ambitious plan to transform its branch network across various parts of Kuwait into environmentally friendly branches with a new identity. Last year, the new branch in Sabah Al-Ahmad Residential City was opened, and six branches were renovated and reopened. These branches are equipped with energy-saving technologies and sustainable materials, reflecting our commitment to environmental responsibility. By prioritizing innovation and customer convenience, the new branch design enhances the client experience while contributing to a greener future.”

Credit Ratings and Recognitions

In 2024, Gulf Bank’s financial strength and operational resilience were affirmed by leading credit rating agencies. Fitch Ratings assigned a Long-Term Issuer Default Rating (IDR) of ‘A’ with a Stable Outlook, while Moody’s rated long-term deposits at ‘A3’ with a Positive Outlook. Capital Intelligence affirmed a Long-Term Foreign Currency rating of ‘A+’ with a Stable Outlook, further highlighting the Bank’s stability and sound risk management practices.

Gulf Bank’s achievements were also celebrated on the global stage, with the Bank receiving 13 regional and international awards. Notably, it was recognized among the “Top 100 Listed Companies in the Region” by Forbes and as one of the “Best 100 Arab Banks” by The Banker.

Commitment to Sustainability

Throught the year 2024, Gulf Bank made significant strides in reducing its environmental footprint, promoting diversity and inclusion, and enhancing social responsibility.

Additionally, Gulf Bank has revealed its ambitious environmental, social, and governance (ESG) strategy for the period 2024-2030, outlining a clear roadmap and key performance indicators for the next six years. The strategy focuses on implementing sustainability standards and enhancing corporate governance practices that reflect the bank's core values and guide every aspect of its banking operations.

Appreciation

Mr. Al-Bahar concluded his remarks by saying: “As we embark on 2025, our strategic initiatives, coupled with our commitment to governance, operational excellence, and innovation, position Gulf Bank for a prosperous future. We will continue to pursue with our intention to explore the feasibility of transforming Gulf Bank into a Sharia-compliant Bank, aiming to achieve sustainable growth to our stakeholders. On behalf of the Board of Directors, I would like to thank our shareholders for their ongoing trust, and our employees for their commitment and dedication. I would also like to thank the Regulatory Authorities for their continuous support. Finally, I want to thank our customers for their loyalty and reiterate our commitment to offering them the best banking experience.”

Key Financial indicators for the year 2024:

• 2024 net profit of KD 60.2 million.
• 2024 operating income of KD 199.3 million, an increase of 4.8% compared to the year 2023.
• Operating profit reached KD 106.7 million, an increase of 3.2% compared to the year 2023.
• Net loans and advances grew by 5.2% year-to-date to reach KD 5.5 billion.
• Non-performing loan ratio as of 31 December 2024 is 1.3%, with a strong non-performance loan coverage ratio of 340%.
• Capital ratios as of 31 December 2024, Tier 1 ratio was 15.2% and Capital Adequacy Ratio (CAR) was 17.3%.