Gulf Bank, a leading lender in Kuwait, has registered a net profit of KD8.8 million ($29 million) for the first quarter of 2016.  

This figure is down by KD 1 million year over year, said a statement from the Kuwaiti bank.

The operating income increased by KD2.5 million or six per cent to KD44 million compared to the same period last year. Furthermore, operating profit before provisions/ impairments increased by KD 1.2 million or five per cent to KD 28.4 million.
 
Announcing the results, the Kuwaiti lender said the net credit costs on loans of KD 0.9 million (specific provisions plus write-offs less recoveries) were booked in Q1 2016 compared with KD16.4 million last year.

Loan quality continues to improve reflecting the Bank’s prudent underwriting policies and procedures. In addition, non-performing loans (NPLs) declined to 2.8 per cent and coverage against these NPLs increased to 350 per cent compared against three and 290 per cent, respectively, at the end of Q1 2015.

The bank’s total loan loss reserves on the balance sheet stood at KD311 million. General provisions comprise KD187 million or 60 per cent of the total.

On the performance, chairman Omar Kutayba Alghanim, said: "I am pleased to report steady progress this quarter, which follows the positive trend of the last year. Our focus is to carry forward this momentum; we will be launching a world-class product later this year which will be the first of its kind in the region."

"The Bank has also recently received approvals from the Central Bank of Kuwait (CBK) and Capital Markets Authority (CMA), as well as approval from shareholders at the bank’s recent Annual General Meeting (AGM), regarding the issuance of a Tier 2 Basel III compliant subordinated bond for up to KD100 million, which will help continue to strengthen the bank’s capital adequacy," he stated.
 
CEO César González-Bueno said: "We have closed last year with an “A” rating from the three leading credit rating agencies which is a strong indication of the transformation the bank has successfully completed and its strategic direction.

"At the Annual General Meeting on 9 March, shareholders endorsed the board's recommendation for a cash dividend for the first time after the 2008 financial crisis, reflecting the bank’s strong financial position. Our Consumer Banking and Wholesale Banking products and services have been well-received and more innovative, easy-to-use products will soon be on the market," he added.-TradeArabia News Service