Ahmad Mohammad Al-Bahar:

  • Gulf Bank continued to strengthen its position in Kuwait’s banking sector, underpinned by a competitive business model and robust governance.
  • Kuwait’s economic landscape showed signs of improvement, supported by fiscal reforms and renewed development activity.
  • Our financial performance reflects our balanced approach to meaningful growth, while maintaining a high-quality loan portfolio.
  • Gulf Bank marks its 65th anniversary with a clear focus on the future, guided by institutional maturity and a strong foundation.

Sami Mahfouz:

  • During the year, Gulf Bank maintained a strong financial position, driven by robust balance sheet growth and the advancement of key operational initiatives.
  • Gulf Bank’s newly launched 2030 strategy provides a roadmap to Sharia-compliant conversion and acceleration of business growth.
  • We advanced our operational readiness to support the planned transition to Islamic Banking, including systems, governance, and people capabilities.
  • The strong credit ratings in 2025 reflected Gulf Bank’s financial strength and its competitive position in the banking sector

Kuwait City – Gulf Bank K.S.C.P. (“Bank”) announced its financial results for the full year ending 31 December 2025. The Bank reported a net profit of KD 52.4 million for the full year 2025, with an earning per share of 13 fils for the year, compared to a net profit of KD 60.2 million and earnings per share of 15 fils for the same period in 2024.

Accordingly, the Bank’s Board of Directors is recommending a cash dividend distribution of 9 fils per share, representing a 68% cash payout ratio in addition to a 5% bonus share distribution, all of which are subject to shareholder approval at the Annual General Meeting scheduled for March 2026.

Furthermore, Gulf Bank recorded an operating income of KD 188.9 million for the full year 2025, marking a decrease of 5.2% compared to the previous year. Operating profit before total provisions and impairments reached KD 94.6 million, reflecting a decline of 11.4% compared to 2024.

The decline in net profit for the full year 2025 is attributed to the decline in net interest income of KD 10.2 million or 6.5%, coupled with a slight increase in operating expenses of KD 1.7 million or 1.8%, compared to the same period of 2024. However, these declines were partially offset by the improvement in total provisions and impairments, which declined by KD 4.2 million or 9.6% year-on-year, reaching KD 39.3 million for the full year 2025.

Now looking at the financial performance of the fourth quarter of 2025, the Bank reported a net profit of KD 14.0 million, with an operating income of KD 48.3 million, and operating profit before total provisions and impairments of KD 25.6 million. 

The Bank's proactive risk management approach has effectively mitigated risks and maintained the quality of its loan portfolio. As of 31 December 2025, the Bank’s non-performing loans (NPL) ratio stood at 1.1%, compared to 1.3% at the end of the previous year. Additionally, the Bank continues to have ample NPL coverage ratio, which reached 370%, inclusive of total provisions and collateral, providing a solid buffer against any potential credit losses.

As of 31 December 2025, total credit provisions reached KD 256 million, whereas IFRS 9 accounting requirements (i.e., ECL or expected credit losses) were KD 166 million. This results in a substantial excess provision level of KD 90 million, over and above what is mandated by IFRS 9 accounting requirements.

In comparison to 31 December 2024, Gulf Bank’s total assets increased by 2.9% to reach KD 7.7 billion, with net loans and advances rising by 7.2% to KD 5.9 billion. Additionally, total deposits grew by 2.2% to reach KD 5.7 billion, while shareholders’ equity increased by 2.5% to reach KD 854 million for the year ended 2025.

The Bank’s capital position remains robust, supported by strong internal capital generation. As of 31 December 2025, the Bank’s regulatory Tier 1 capital ratio stood at 14.8%, exceeding the regulatory minimum of 12% by 2.8%. Additionally, the Capital Adequacy Ratio (CAR) was 16.9%, surpassing the regulatory minimum of 14% by 2.9%.

Measured progress

Commenting on the financial results, Gulf Bank Chairman Mr. Ahmad Mohammad Al-Bahar stated: “The year 2025 represented a period of measured progress, focused on strengthening Gulf Bank’s foundations and advancing key strategic priorities. This was achieved in an economic environment that combined both global uncertainty and gradual domestic momentum. Locally, Kuwait’s economic landscape showed signs of improvement, supported by fiscal reforms and renewed development activity. Against this backdrop, Gulf Bank continued to strengthen its position in Kuwait’s banking sector, underpinned by a competitive business model and robust governance.”  

He added: “Our financial performance during 2025 reflects our balanced approach towards meaningful growth, while maintaining a high-quality loan portfolio. This is supported by disciplined underwriting standards and proactive risk management.”

Mr. Al-Bahar continued: “During the year, we advanced our planned transition to a Sharia-compliant Bank following the Central Bank of Kuwait’s initial approval to proceed with this transformation. This represents an important milestone in the Bank’s strategic evolution that supports a strong financial profile, customer service excellence, and long-term value creation. Moreover, the Bank continued to explore strategic opportunities, both organically and inorganically, aimed at enhancing long-term shareholder value. This includes the ongoing evaluation of a potential merger with Warba Bank.” 

Operational initiatives

Commenting on the operational performance of Gulf Bank for the year 2025, Acting Chief Executive Officer Mr. Sami Mahfouz said: “The year 2025 was characterized by disciplined execution amid a challenging operating environment. Despite ongoing external pressures, Gulf Bank maintained a strong financial position, driven by robust balance sheet growth, and the advancement of key operational initiatives aligned with its long-term strategic aspiration.”

He added: “We launched our 2030 five-year strategy, which provides a clear roadmap centered on completing the Bank’s conversion to a Sharia-compliant Bank, accelerating growth across retail and corporate businesses, and selectively expanding into untapped opportunities.”

On the latest updates regarding the conversion to a Sharia-compliant Bank, Mr. Mahfouz said: “During the year, the management focused on preparing the Bank for the planned transition to a Sharia-compliant operating model, following the Central Bank of Kuwait’s preliminary approval to initiate conversion activities. Dedicated governance arrangements and cross-functional working groups are in place to manage implementation covering operations, legal, technology, and product development.”

Credit Ratings and Recognitions

In 2025, Gulf Bank’s creditworthiness continued to be well-recognized by leading international credit rating agencies. During the year, Fitch Ratings reaffirmed the Bank’s Long-Term Issuer Default Rating at ‘A’, while Moody’s affirmed its long-term deposit rating at ‘A3’. Capital Intelligence Ratings also reaffirmed the Bank’s Long-Term Foreign Currency rating at ‘A+’, in addition to maintaining the rating on the Bank’s Basel III-compliant Tier 2 Subordinated Bonds at ‘BBB+’. All ratings were assigned Stable Outlooks, underscoring Gulf Bank’s resilient financial position, well-diversified and stable funding base, and robust domestic franchise.

Gulf Bank’s achievements were also celebrated on the global stage with multiple independent recognitions from leading international bodies. The Bank was recognized for excellence in digital banking, customer experience, wealth management, social media engagement, and sustainability. These acknowledgements reinforce Gulf Bank’s position as a leading financial institution in Kuwait and provide independent validation of its competitive advantage.

Appreciation

Mr. Al-Bahar concluded his remarks by saying: “As Gulf Bank marks its 65th anniversary, we do so with a clear focus on the future. More than six decades of continuity and contribution have provided the Bank with a strong foundation from which to move forward with confidence and maturity. We remain focused on positioning Gulf Bank for its next phase of growth. On behalf of the Board of Directors, I would like to thank our shareholders for their continued trust, our employees for their dedication, our regulators for their ongoing support and guidance, and our customers for their loyalty.”

Key Financial indicators for the year end 2025:

  • Full year 2025 net profit of KD 52.4 million.
  • Full year 2025 operating income of KD 188.9 million
  • Net loans and advances grew by 7.2% year on year to reach KD 5.9 billion.
  • Non-performing loan ratio as of 31 December 2025 is 1.1%, with an ample non-performance loan coverage ratio of 370%, inclusive of total provisions and collateral.
  • Capital ratios as of 31 December 2025, Tier 1 ratio was 14.8% and Capital Adequacy Ratio (CAR) was 16.9%, both ratios above regulatory minimum requirements.