Net profit for FYE 2011 KD 30.6m against KD 19.1m in 2010

EPS at 12 Fils against 8 Fils in 2010

Kuwait - 12 February 2012: Gulf Bank today announced a net profit of KD 30.6 million in 2011, compared to KD 19.1 million in 2010. Earnings per share amounted to 12 fils. The Board of Directors has recommended to the General Assembly a 5% bonus shares to be distributed to the shareholders.

As of the end of December 2011, the Bank's total assets reached KD 4,785.9 million, deposits KD 4,107.3 million, whilst total shareholders' equity measured up to KD 430.3 million.

Mr. Ali Al-Rashaid Al-Bader, Gulf Bank's Chairman, said: "This year's results show the application of our customer-centric strategy of providing the best and fastest banking services, the improving conditions in the market where the Bank operates, the relative decline in the statutory and precautionary provisions, in addition to the efforts exerted by the Bank's various business groups, including consumer banking, corporate, international and investment. The Treasury Group consolidated its market leadership in Foreign Exchange dealing and played a significant role in growing the Bank's customer deposit base. Customer deposits grew by 4% to KD 4.1 billion whiles the loan book increased by more than 7%."

 "Our focus on the needs of our customers, developing our customer base and delivering returns to our shareholders must continue as we address new opportunities to grow and deliver excellence in corporate and consumer banking services to the Kuwait market, while enhancing the Bank's reserves and financial capability", Al-Bader elaborated.

"The year 2011 witnessed the completion of the Bank's strategic plan, which commenced in 2010, and aimed at building a fortress balance sheet, focusing on our core competencies, fostering the Bank's management and technical abilities, upgrading internal control systems in the area of risk management, and refining the Bank's marketing plans. A new expansionary strategy was set for the forthcoming four years - up to 2015. " Al-Bader continued.

Key Performance Indicators:





General View on Performance in 2011

During 2011, Gulf Bank launched its 'We Promise' program offering its customers the best and the fastest financial service in Kuwait. Gulf Bank is the first bank in Kuwait that makes explicit guarantees to deliver individual services with exceptional speed and efficiency. Consequently, the Bank has received excellent customer feedback praising the Bank in meeting the promises made and maintaining outstanding customer service.   

In December, Gulf Bank was the only bank in the region to get an upgrade on both its ratings and outlook from the rating agency, Standard & Poor's (S&P). Gulf Bank's long-term credit rating was upgraded from BBB- to BBB, and its outlook was raised from stable to positive. "The upgrade from S&P reflects the strength of our financial performance, the quality of our assets and the effectiveness of our business strategy," Mr. Al-Bader said.

Gulf Bank has conducted many social activities throughout the year in serving the community at large, all which fall under the Bank's Corporate Social Responsibility strategy.

Gulf Bank was recognized for its excellence in 2011 and received many prestigious awards. These awards included: 'Best Bank in the retail sector' award from the Arabian Business Magazine, '2012 Best Foreign Exchange Bank Provider' in Kuwait by Global Finance Magazine, 'Thought Leadership Excellence' Award at the MENA CIO's Summit 2011, the 'International Excellence in Retail Financial Services' award from The Asian Banker, the 'Best Retail Customer Service', the 'Best Phone Banking Service', the 'Best Corporate Governance' and 'Best Employee Training' awards from the Banker Middle East, the 'Quality Recognition Award' from Citibank, Deutsche Bank's Award for International Payment Performance and the 'GCC Localization Award' for seven consecutive years from the GCC Council of Ministers of Labour and Social Affairs.

"Gulf Bank looks to the future with great confidence. We are serving our customers with excellence, we are contributing to Kuwait's economic growth and prosperity and we strive to deliver an outstanding return on our shareholders' investment," concluded Mr. Al-Bader.

© Press Release 2012