Gulf Bank announced net profits of KD 15.6 million for the first half of 2014, up 9.5% from KD 14.3 million over the same period in 2013.
Operating profits before provisions were KD 53.7 million against KD 53.5 million for the same period last year, a bank statement said.
The Bank has continued its strategy to build a fortress balance sheet, increasing precautionary general provisions to KD 173 million, and by reducing the non-performing loans ratio to 5.1%. The Bank has increased the total coverage ratio of non-performing loans to over 225%.
Gulf Bank's progress has been recognized by international credit rating agency Moody's, who have upgraded Gulf Bank's rating to Baa1 from Baa2 and the Standalone Financial Strength rating to D from D- while maintaining the Positive Outlook. In addition, Standard & Poor's (S&P) have also recently affirmed the Bank's long-term credit rating at BBB+ with a positive outlook. Both rating agencies affirmed the Bank's asset quality, capitalization, noting its solid revenue generating capacity, and sound risk management systems and practices.
"We have also been awarded the "Best Domestic Retail Bank" and "Best Human Resources Development" awards for 2014 from Banker Middle East, which affirm our growing reputation for excellent customer service and talent development," Gulf Bank's CEO Cesar Gonzalez-Bueno.
He added "we are aware that we must continually seek to exceed customers' expectations, in terms of innovation and uniquely designed financial products and services, as well as continuing our investment in our Learning and Development department for the benefit of the Bank and its staff." "Gulf Bank would not have received these awards were it not for the dedication of the whole Gulf Bank team. Gulf Bank will continue to focus on customer-centricity and financial discipline," Gonzalez-Bueno concluded.