Kuwait City, Mar 24: The ordinary and extraordinary general assembly of Gulf Bank was held on March 23, 2024, with a quorum of 79.16%. The Board of Directors is recommending a distribution of a cash dividend of 12 fils per share, and to distribute 5% bonus shares was approved during the meeting.

During his speech addressed to the shareholders, Mr. Bader Nasser Al-Kharafi, Chairman of the Board of Directors at Gulf Bank said:” I am proud of Gulf Bank's excellent financial results for the year 2023, achieving the highest level of net profits during the past decade. The increase in profitability was matched with an increase in dividends cash distributions to 12%, accompanied by bonus shares distributions of 5%.”

He mentioned that the Bank is reaping the benefits of its Kuwait focused strategy. It is steadily advancing towards its strategic objectives of delivering unparalleled banking services to customers, enhancing operational efficiencies, and upholding financial transparency and governance principles. These efforts are firmly rooted within the Bank's commitment to providing sustainable value to all stakeholders over the long run.

He added: "We are working hard to strengthen our systems and policies to ensure we achieve the highest standards of financial performance, and to remain at the forefront in providing innovative and reliable banking services. Stressing that the Bank will continue to achieve outstanding results and remarkable financial stability."

He continued: "The performance we have demonstrated over the past years highlights the trust the Bank enjoys in the financial markets and local banking sector, announcing that Gulf Bank is in the process of developing an innovative strategy for the forthcoming years focusing on enhancing financial and operational performance, and providing the best products and services.”

Al-Kharafi expressed appreciation to the former Chair of Gulf Bank’s Board of Directors, Mr. Jassim Mustafa Boodai, for his valued efforts and leadership, which played a pivotal role in driving exceptional growth across all performance indicators of the Bank. He conveyed his best wishes for Mr. Boodai's and extended his gratitude to all members of the Board of Directors, the executive management, and all employees for their contributions to the Bank's success.

Success Despite Challenges

In his presentation of key performance indicators, the Acting CEO of Gulf Bank, Mr. Waleed Khalid Mandani, stated: "2023 was a successful year for Gulf Bank, full of achievements despite local and regional challenges."

He highlighted the Bank's continuous and steady approach towards exceptional revenue growth and profitability, while maintaining its high assets quality, through controlling non-performing loan ratios at their lowest levels and investing in the development of human capital.

He added: "We have also made significant progress in enhancing cost efficiency through precise evaluation, streamlining processes, and embracing digital innovation. These efforts have had a positive and noticeable impact on returns to our investors and delivered excellent services to our customers, thereby solidifying Gulf Bank's leading position in the local banking sector."

Financial Indicators

On a related note, Mandani outlined the key financial indicators for Gulf Bank during the year 2023, noting that the Bank achieved a15% growth in net profits to reach KD 71.2 million, compared to KD 61.8 million in 2022. Earnings per share also increased by 13% to 21 fils, while cash distributions increased from 10 fils per share in 2022 to 12 fils in 2023, with a payout ratio of 57% of net profit, alongside a 5% bonus share distribution.

He pointed out that the total loans and advances increased by 1% to KD 5.5 billion in 2023, with an increase of KD 68 million compared to 2022. Asset quality remained strong, with non-performing loans at 1.2%, supported by substantial coverage at 466%. Additionally, total credit provisions ended 2023 at KD 312 million with excess provisioning level above and beyond what is required by the IFRS9 accounting requirements by KD 125 million.

Furthermore, the regulatory capital adequacy ratio increased from 16.4% in 2022 to 18% in 2023, exceeding the minimum regulatory requirement of 14%. Mandani noted that Gulf Bank holds an "A" rating from the three major credit rating agencies.

April 8, 2024 Record Date for Cash Dividend Distribution

Shareholders registered in the bank's records as of the record date, April 8, 2024, are eligible to receive cash dividends, with distribution set for April 18, 2024.

Recognition

Mr. Bader Al-Kharafi stated: "On behalf of the Board of Directors, I would like to express my appreciation to the Central Bank of Kuwait, the Capital Markets Authority, and the Ministry of Commerce and Industry for their relentless efforts in supporting and enhancing the Kuwaiti banking sector. Additionally, I extend my thanks to all our customers, partners, and shareholders for their trust and support."

Eco-Friendly Branch Network

Gulf Bank launched its first eco-friendly branch in Sabah Al-Ahmad residential area, marking the beginning of a comprehensive network transition towards sustainability. This initiative aligns with the bank’s ongoing implementation plan, reflecting its commitment to embedding sustainability principles. Gulf Bank is confident that integrating environmental, social, and governance (ESG) standards into its practices and activities will enhance the customers' experience and promote sustainable products and services in the market.

Prestigious Awards

During 2023, Gulf Bank was recognized by several prestigious organizations. Gulf Bank was awarded with “Best Prepaid Card Program in Kuwait" award for 2023 during the Mastercard MENA East Business Forum, for the Gulf Bank Mastercard Prepaid Card. In addition, Gulf Bank was awarded two awards for "Best Training and Development" and "Excellence in Diversity and Inclusion" by the Middle East and North Africa Human Resources Management Summit 2023 signifying Gulf Bank's outstanding efforts in enhancing its employees' skills and achievements in promoting sustainability principles within the workplace. Furthermore, Gulf Bank was awarded “The Prestigious Excellence in Data Innovation” award by the 2023 Finnovex Awards Summit in recognition of its excellence in leveraging data to drive transformative change and create new opportunities in the banking industry.