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Jul 30 2011

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Gulf Bank H1 net profit KD 18.3 mln

KUWAIT CITY, July 30: Gulf Bank today announced a net profit of KD 18.3 million for the first half of 2011, against KD 1.9 million for the first half of the previous year. Earnings per share amounted to 7 fils.

The Bank's Profit before provisions amounted to KD 56.5 million for the first half of the year. This compares to KD 87.2 million for the corresponding period of 2010, which, however, included KD 42.4 million in extraordinary items (the sale of some investments and CDS revaluation). Thus, core operating profits (before extraordinary items and provisions) reached KD 50.2 million for the first half of 2011, compared to KD 44.8 million for the same period of 2010.

As of the end of June 2011, the Bank's total assets reached KD 4,702 million, deposits KD 4,042 million whilst total shareholders' equity measured up to KD 429 million.

Ali Al-Rashaid Al-Bader, Gulf Bank 's Chairman, said: "These results continue the outstanding start the Bank made in the first quarter. The results we have announced today for the second quarter show the stable growth of the Bank's customer base, net profits and core earnings.

We expect to maintain this trend throughout 2011 by constantly offering a mix of high quality services while increasing customer satisfaction, in the wake of anticipated economic improvement."

Al-Bader stressed that the achieved profits were the result of safe strategies that endeavor to bolster protective provisions in view of unforeseen developments that can have an impact on the local and global economies.

"The Bank is continuing to progress its strategic plan as expected, increasing precautionary provisions by KD 33.7 million to reach KD 65 million, in line with its plan to create a "fortress balance sheet" and to further its capacity to grow and expand." He elaborated.

Commenting on the results, Al Bader said: "We are pleased that our business performance, particularly our core operating profit, continues to grow as planned. Our customers and shareholders have showed great confidence in our overall strategy and capabilities, so we are thankful for their support and we are very pleased to report that strong progress is being achieved."

In line with the plans to upgrade its systems, the Bank recently inaugurated its new IT Data Center Facility, located in Hawally. This new state of the art facility is a vital part of the Bank's information technology strategy and will provide a secure, bank-wide, world-class infrastructure for customers' transactions and data, while ensuring business continuity at all times.

Today's announcement follows a number of other major awards which Gulf Bank has recently received for the excellence of it services during 2010 and 2011. These include: 'Best Bank in the Retail Sector' from Arabian Business Magazine, Best Bank for Corporate Governance, Best Employee Development Program and, 'Best Retail Bank' award for superior customer service and innovation from The Banker Middle East, 'Best Employer' award in the GCC at the GCC Human Resource Excellence Awards, the Localization Award from the GCC Council of Ministers of Labour and Social Affairs for the sixth consecutive year.