The Kuwait-based Gulf Bank is structured around two main business segments; domestic banking, which refers to all commercial and retail banking operations including deposits, loans, and current accounts for individual and institutional customers; and international and treasury activities, which provide money market, trading and treasury services, as well as the management of the Bank’s funding operations by use of treasury bills, government securities and placements and acceptances with other banks, through treasury and wholesale banking.

Gulf Bank is Kuwait’s second largest conventional bank in terms of its total assets of KWD4.9 billion (USD17.9 billion), and third largest among all kuwaiti banks, including conventional and Islamic, as of 2008.

Gulf Bank recorded a loss of KWD359.5 million (USD1.3 billion) charging KWD333.8 million (USD1.2 billion) of provisions, in 2008; the bank suffered a severe crisis in October 2008, reporting a loss due to exposure relating to a small number of highly volatile derivatives contracts. The deficit amounted to KWD375 million (USD1.4 billion), which comprised losses in currency derivatives for its customer accounts, trading in financial instruments, as well as provisions relating to loan and investment portfolios. Shareholder's equity decreased, in 2008, by 91% to KWD38 million (USD 137.6 million). Consequently, the Bank issued a rights issue to recapitalize and thus increase paid up capital by 100% to KWD250.77 million (USD858.8 million).The Kuwait Investment AuthorityKuwait Investment Authority acquired a 16% share in the Bank’s capital.

The treasury and international division reported a loss of KWD413.3 million (USD1.5 billion) in 2008 against a gain of KWD19.1 million (USD66.5 million), in 2007. The company’s domestic banking contribution also decreased, in 2008, by 52% to KWD53.7 million (USD187.1 million).

The bank's loss was restored in the first quarter of 2009, with a profit of KWD1.6 million (USD 5.45 million), down by 95% from the same period in 2008. The drop is attributed to provisions of KWD9 million (USD31.6 million) and also to the decrease in the bank’s investments from KWD2.94 billion (USD11 billion), in March 2008, to a loss of KWD4.67 billion (USD17.2 billion), in March 2009.

Gulf Bank recorded a loss of KWD9 million (USD31.6 million), in the second quarter of 2009, down from KWD23.78 million (USD82.9 million) in the same period of 2008, due to loan defaults from Saudi Arabia, that amounted to KWD7.5 million (USD26 million) in the first half of 2009 and provisions were set at KWD58.6 million (USD204.2 million).