Gulf Bank posted an operating profit of KD 44.3 million for the first quarter of 2010, compared to KD 15.6 million for the corresponding period of 2009, achieving a growth rate of nearly 280%. The first quarter results included an exceptional gain of KD 14 million on the sale of an investment portfolio.
Commenting on the positive results, Mr. Ali Al-Rashaid Al-Bader, Chairman – Gulf Bank, said: “In view of the fact that the Kuwaiti economy is still in the primary stages of recovery from the consequences of the global financial and economic crisis, the Bank had to cope with the market conditions through continuing to implement precautionary plans to meet the technical provisioning requirements. This necessitated setting aside the bulk of the operating profit of KD 44.3 million for 2010 Q1, and adding this amount to the provisions made to offset the risks of certain existing credit facilities. As a result, net profit declared for the 2010 Q1 amounted to KD 524,000. Provisions enhancement and improvements in collateral led to improving the capital adequacy ratio of the Bank from 15.9% as at December 31, 2009, to 17.4% as at March 31, 2010”.
“The reported net profit serves as a good indicator of the continuity of the Bank’s recovery and the shift to the stage of its adequate profitability. The net profit reflects the Bank’s restoration of its prominent position as a leading Kuwaiti financial institution, which is properly prepared for sustainable future growth and success” adds Al-Bader.
“The results were driven by a set of positive factors that contributed to the Bank’s acceptable performance during 2010 Q1. These include the great efforts exerted by the Bank towards improving the credit and investment portfolios profile; the general improvement in the local and regional economic activity; and the adherence to the Bank’s conservative strategy by focusing on the core banking business which responds to the requirements of the various customer segments.”
Al-Bader continued: “Gulf Bank’s profits mirror the management and employees’ relentless efforts in achieving the strategic objectives of the Bank for the coming three years, and which execution has commenced through implementing the action plan for 2010.”
“Gulf Bank maintains an optimistic outlook for the coming period, with the anticipated improvement in the general economic conditions of the country, and the expected execution of the several vital projects provided for in the new development plan.” Al-Bader concluded.