Operating profit amounts to KD 100 mln
KUWAIT CITY: Gulf Bank announced a net profit of KD 30.6 million in 2011 against KD 19.1 million in 2010 with earnings per share amounting to 12 fils, at its Annual General Meeting.
As of the end of December 2011, the bank's total assets reached KD 4,785.9 million while total shareholders' equity measured up to KD 430.3 million. The board of directors has recommended to the General Assembly a 5% bonus share to be distributed to the shareholders.
The operating profit for 2011 amounted to KD 100 million compared to the KD 133.8 million achieved in 2010 which had included non recurring items amounting to KD 40 million. Net interest income rose from KD 103.4 million in 2010 to KD 106 mainly due to improved margins. Net profit for the year was traced at KD 30.6 million compared to 19.1 million in 2010, reflecting a growth rate of 60%.
Share
Qualifying Tier 1 capital comprising of paid-up share capital, reserves, retained earnings and treasury shares increased to KD 406.4 million from KD 377.2 in the previous year. Qualifying Tier 2 capital which includes property revaluation reserve, fair valuation reserves, general provisions and subordinated debt, decreased to KD 97 million from KD 114.6 in Dec 2010.
Total assets improved by KD 186 million as of 31 December 2011. Loans and advances grew by 7% during the year; customer deposits increased by 8% and shareholders deposits were augmented by 5 %. The independent auditor's report shows total assets of KD 4,786,895 and total liabilities and equity of KD 4,785,895.
Ali Al Rashaid Al Bader, Gulf Bank's Chairman stated that the year's results showed the application of customer centric strategy in banking services, efforts towards improving the conditions in the market where the bank operates, the relative decline in the statutory and precautionary provisions in addition to the contribution of the bank's various business groups. "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 while the loan book increased by more than 7 %," he informed.
He continued, "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."
In 2011, Gulf Bank launched its 'We Promise' program to deliver individual services with speed and efficiency and officials asserted that the bank has received excellent customer feedback. A new Enterprise Risk Management (ERM) system was also implemented to provide the bank with a centralized view of risk and liquidity.
Gulf Bank's long-term credit rating was upgraded from BBB- to BBB, and its outlook was raised from stable to positive in December from the rating agency, Standard & Poor's (S&P). "The upgrade from S&P reflects the strength of our financial performance, the quality of our assets and the effectiveness of our business strategy," Al-Bader said.
Officials highlighted the many social activities conducted throughout the year as part of the bank's Corporate Social Responsibility strategy which included national day celebrations, blood donation drives, etc.
Gulf Bank also received many awards in 2011, which 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 '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," said Al-Bader.
He also informed that the new strategy for the coming four years which is to be presented to the board of directors for review and approval features expansion and growth and aims at increasing the bank's market share, both by growing sources of funds from new and existing accounts and increasing the ideas of financing, lending and investment.
© Arab Times 2012
