Gulf Bank reports net loss of KD 28 million for 2009
Gulf Bank has announced operating profits of KD 83 million for 2009. However, provisions requirements of KD 111 million for the credit portfolio led to a net loss of KD 28 million for the year, or 12 fils per share.
Ali Al-Rushaid Al-Bader, Gulf Bank’s Chairman, stated: “Gulf Bank’s normal operating profit amounted to KD 106 million before adjusting it for accounting considerations. This notable operating performance is the direct result of the hard work of all the staff, as well as the new conservative strategy to refocus on our core banking business. However, this strong operating performance was, unfortunately, negatively impacted by the provisions required for coping with the retreating quality of some credit facilities and market general conditions".
"Despite the substantial increase in the credit provisions, the Bank's capital ratio, at 16%, remains comfortable and adequate for its needs and for future growth requirements", Al Bader added.
“The Bank's management will continue to implement its plans aimed to grow the Bank's business and its credit and investment portfolios, ensuring the realization of targeted objectives. We will focus on developing our human capital to meet top professional standards and best practices, thereby enabling Gulf Bank to better serve its customers. We expect the Bank to show operating profits in 2010, sufficient to absorb any additional provisioning requirements", Al-Bader concluded.