Kuwait, 31 July 2022: Gulf Bank K.S.C.P. announced its financial results for the first half ending 30 June. The Bank reported a net profit of KD 30.3 million, an increase of KD 13.8 million or 83% compared
to 2021 first half net profit of KD 16.5 million. Subsequently, the Bank’s return on assets improved from 0.5% in the first half of 2021 to 0.9% in first half of 2022 and return on equity grew from 5.2% to 9.1%.
Gulf Bank recorded an operating income of KD 85.3 million for the first half 2022, and an operating
profit before provisions of KD 44.1 million for the same period.

The increase in the net profit was mainly driven by a 3% or KD 2 million increase in operating income,
and a decline of 52% or KD 13.5 million in total provisions. As for asset quality, the non-performing loans (NPL) ratio stood at 1.0% as of 30 June 2022, lower than the prior year level of 1.4%. Additionally, the Bank continues to have significant non-performing loans coverage ratio of 531% including total provisions and collaterals.

Total credit provisions as of 30 June 2022 reached KD 304 million whereas IFRS 9 accounting
requirements (i.e., ECL or expected credit losses) were KD 190 million. As a result, the Bank has very
healthy excess provision level of KD 114 million, above and beyond what is required by the IFRS9
accounting requirements.

Compared to first half 2021, total assets increased by 9% to KD 6.9 billion, net loans and advances to
customers increased by 14% to KD 4.9 billion, and shareholders’ equity increased by 5% to reach KD 677
million. Customer deposits reached KD 4.6 billion, an increase of 10% compared to the prior year.

The Bank’s regulatory Tier 1 ratio of 13.0% was 2.5% above the regulatory minimum of 10.5% and the
Capital Adequacy Ratio (CAR) of 15.2% was 2.7% above the regulatory minimum of 12.5%.

Strong Performance
Commenting on the results, Mr. Jassim Mustafa Boodai, Gulf Bank’s Chairman said: “I am pleased to
report that Gulf Bank has achieved a net profit of KD 30 million for the first half of 2022. We continue to
deliver strong performance across all our business lines and make excellent progress with our growth
strategy and digital transformation initiative. Our strong financial position reflects the high quality of the
Bank’s loan book and effective management of credit risk.” Boodai added.
Mr. Boodai concluded his remarks by stating: “It gives us a great pleasure to announce that Gulf Bank
has now its first independent woman director on its Board of Directors, Ms. Reem Al Saleh, who has
been elected during the last General Assembly Meeting of the Bank. On behalf of the Board of Directors,
I would like to thank our shareholders for their ongoing trust, and our employees for their commitment
and dedication. I would also like to thank the Central Bank of Kuwait for their continuous support. Last
but not least, I want to thank our clients for their loyalty, and reiterate our commitment to offering
them the best banking experiences.”

Solid Growth
On the strong financial position of the Bank for the period ending 30 June 2022, Mr. Tony Daher, Gulf
Bank’s Chief Executive Officer stated: “The successful execution of our strategy is demonstrated by
achieving this good performance across all of our businesses. We continue the robust loan growth with
our net customer loans reaching KD 4.9 billion, an increase 14%, compared to the same period of 2021.
This growth was supported by both our Corporate and Consumer segments although at a faster pace for
the consumer segment. This good growth did not affect the asset quality of our portfolio. Our portfolio
remains healthy and resilient, and this is reflected in an NPL ratio of 1% and a non-performing loans
coverage ratio of 531%, including total provisions and collateral for the period”.

Digital Transformation
Gulf Bank continue its 2025 digital transformation Journey. Mr. Tony Daher, Gulf Bank’s Chief Executive
Officer commented: “The Bank is proactively meeting the changing needs of customers through digital
innovation. We have conducted several initiatives to provide our employees and the society with a new
set of skills and opportunities to use data sustainably. Our first Datathon competition for digital data and
analytics in Kuwait witnessed many participants in the field of data modeling, visualization and digital
analytics. In addition, Gulf Bank provided coding training for both new and existing employees. This
training aims to qualify providing innovative technical solutions and enable effective contribution to the
Bank’s digital transformation plans.”

Diversity & Inclusion
Gulf Bank has advanced its ESG journey by further integrating ESG into its strategy. Empowering women,
youth and people with special needs is a major approach of Gulf Bank's sustainability program. We pay
special attention to minority groups and implement plans for their financial inclusion and independence.

Gulf Bank has recently recruited 13 graduates during the Career Fair for People with Special Needs,
making the Bank one of the largest employers of young Kuwaiti special needs talent at the Career Fair.
On the other hand, Gulf Bank is a firm believer in supporting and empowering women in the workplace.
The Bank is now a founding member of the Women’s Economic Empowerment Platform Kuwait
(KWEEP), a local initiative to support the growth and advancement of women in the workplace. The
Platform will operate under the leadership of the General Secretariat of the Supreme Council for
Planning and Development (GSSCPD), the Women’s Research and Studies Center (WRSC) at Kuwait
University and supported by UN Women and the United Nations Development Program (UNDP).

Credit Ratings
Gulf Bank continues to be well recognized internationally in terms of its creditworthiness and financial
strength. During the first half of the year 2022, Capital Intelligence has affirmed Gulf Bank’s Long-term
Foreign Currency ratings at “A+”. At the same time, Capital Intelligence has also affirmed the Bank’s
KWD50 million Basel III-compliant Tier 2 Subordinated Bonds rating at “BBB+” with a “Stable” Outlook
for both the Bank and Bond rating.
In addition, Gulf Bank has a Long-Term Issuer Default Rating of ‘A’ with a ‘Stable’ Outlook by Fitch
Ratings, which has also upgraded the Bank’s Viability Rating to “bbb-“ from “bb+” during the first
quarter of 2022, a Long-Term Deposits rating of ‘A3’ with a ‘Stable’ Outlook by Moody’s Investor
Services and an Issuer Credit Rating of ‘BBB+’ with a ‘Stable’ Outlook by S&P Global Ratings.