Kuwait’s Gulf Bank Posts 15% Rise in FY 2023 Net Profit to $231mln

Gulf Bank, Kuwait’s third-biggest lender by assets, saw its full year 2023 net profit jump by 15% to 71.2 million dinars ($231 million).

The growth in earnings has been due to rising net interest income, which grew 5.8%, and improved non-interest income, which went up by 2.5%, the lender said in a statement on Monday. The positive results were also attributed to lower provisions and impairments, which dropped by 4.7%.

Operating profit before provisions and impairments reached KWD 103.4 million for the year, an increase of 9% compared to 2022, while earnings per share went up by 13.2% to 21 fils.

The lender’s Board of Directors is recommending a cash dividend of 12 fils per share, representing a 57% cash payout ratio, and 5% bonus shares.

As of December 31, 2023, non-performing loans (NPL) ratio stood at 1.2%, compared to the previous year’s 1.1%. Non-performing loans coverage ratio was significant at 466%, including total provisions and collaterals.

The lender completed a capital increase of KWD 60 million in 2023 to pursue growth opportunities, as well as boost its capital base and enhance regulatory capital ratios.