Gulf Bank Strengthens Shareholder Value with 9% Cash Dividends and 5% Bonus Shares Approval
Gulf Bank convened its Ordinary General Assembly on Saturday, achieving a quorum of 77.3%. The assembly approved a cash dividend of 9% per share and bonus shares of 5% for the financial year ending December 31, 2025. This decision underscores the bank’s commitment to enhancing shareholder value amid a challenging economic landscape.
Strategic Progress Towards Sharia Compliance
Ahmad Mohammad Al Bahar, Chairman of Gulf Bank, highlighted the bank’s significant strides toward its planned conversion into a Sharia-compliant institution. He noted that the bank is entering a new phase with a clear strategic direction, bolstered by strong governance and a solid financial foundation. The 2030 Strategy aims to reinforce Gulf Bank’s market position while promoting sustainable growth.
Al Bahar emphasized the importance of the Central Bank of Kuwait’s initial approval for the conversion, describing it as a critical milestone in the bank’s strategic evolution. This transition is expected to enhance financial performance, customer service, and long-term value creation.
Financial Performance Overview
Faisal AlAdsani, Acting Deputy Chief Executive Officer, reported that Gulf Bank’s financial performance in 2025 reflects a balanced approach to growth. The bank achieved a net profit of KD 52.4 million, translating to earnings per share of 13 fils. The asset quality indicators remained robust, with a non-performing loan (NPL) ratio of 1.1% and an NPL coverage ratio of 370%, which includes total provisions and collateral.
Total credit provisions reached KD 256 million, resulting in an excess provision level of KD 90 million over IFRS 9 accounting requirements. Additionally, total loans and advances increased by 7% to KD 6.1 billion, marking a rise of KD 382 million compared to 2024.
AlAdsani noted that the bank’s capital adequacy levels supported balance sheet growth while maintaining healthy buffers above regulatory requirements. The Tier 1 Capital Ratio stood at 14.8%, and the Capital Adequacy Ratio (CAR) was at 16.9% as of December 31, 2025, both exceeding minimum regulatory thresholds.
Strategic Outlook and Operational Initiatives
Despite external pressures, Gulf Bank maintained a strong focus on sustainable financial performance and balance sheet resilience. AlAdsani stated that the bank prioritized prudent risk management, funding diversification, and talent development to adapt to evolving market conditions and regulatory requirements.
The bank concluded its five-year strategy for 2025, completing several foundational initiatives that strengthened its operating platform. Key milestones included the completion of core banking transformation and enhancements to omni-channel capabilities. The subsidiary InvestGB also expanded its offerings, improving scalability and service delivery.
In preparation for the transition to a Sharia-compliant bank, Gulf Bank established dedicated governance structures and cross-functional teams to oversee the program across operational, legal, technology, and product areas. Significant progress has been made in assessing system requirements and strengthening governance frameworks.
Dividend Payment Schedule
Shareholders registered in the company’s records as of April 8, 2025, are entitled to the approved cash dividends and bonus shares, with the payment date set for April 15, 2025.
Celebrating 65 Years of Economic Contribution
In 2025, Gulf Bank marked its 65th anniversary, reflecting over six decades of resilience and contributions to Kuwait’s economic development. Since its establishment in 1960, the bank has supported major development projects and expanded its financial services, maintaining a trusted presence in the community.
Credit Ratings and Recognition
Gulf Bank’s creditworthiness remains well-recognized by leading international credit rating agencies. Fitch Ratings reaffirmed the bank’s Long-Term Issuer Default Rating at ‘A’, while Moody’s affirmed its long-term deposit rating at ‘A3’. Capital Intelligence Ratings also reaffirmed the bank’s Long-Term Foreign Currency rating at ‘A+’, along with maintaining the rating on the bank’s Basel III-compliant Tier 2 Subordinated Bonds at ‘BBB+’. All ratings were assigned Stable Outlooks, reflecting Gulf Bank’s resilient financial position and stable funding base.
Acknowledgment of Regulatory Support
Ahmad Al Bahar expressed gratitude to the Central Bank of Kuwait and the Capital Markets Authority for their ongoing support of the banking sector. He also acknowledged the shareholders, customers, board members, executive management, and employees for their continued trust and commitment to Gulf Bank.
As reported by www.zawya.com.
