Gulf Bank today held its Annual General Meeting (AGM) at the Movenpick Hotel, Kuwait, where shareholders approved the business's audited monetary outcomes for the year ended 31 December 2015 and endorsed the suggestion of Gulf Bank's Board of Directors for a money dividend of 4 fils per share.

The Bank's balance sheet continued its trend of steady development, with gross client loans increasing 3 % to KD 3,926 million, assets up 2 % to KD 5,438 million, transfers up 5 % to KD 4,563 million, and equity growing 5 % to KD 538 million compared to 2014. The Tier 1 capital ratio stands at 14.4 %, which is also above the minimum requirement of 10.5 %, and comprises 92 % of the Bank's total capital.

Loan quality stays strong, reflecting the Bank's prudent danger appetite. Non-performing loans (NPLs) declined from 3.3 % at the end of 2014 to 2.7 % at the end of 2015, and coverage (securities and provisions) on NPLs improved to 348 %. Of the Bank's overall loan loss reserves of KD 293 million, KD 178 million or 61 % are basic provisions.

Commenting on the 2015 outcomes, Mr. Omar Kutayba Alghanim, Gulf Bank's Chairman said: "As we commemorate the 55th anniversary of the starting of Gulf Bank, it gives me great satisfaction to report to you on the Bank's performance and development. We have actually changed the Bank quite dramatically given that 2012. Today we have a much stronger Consumer Banking franchise, a more diversified Wholesale Banking business, reduced our concentration on the realty and non-bank monetary sectors, minimized non-performing loans, and enhanced our loan loss coverage. In general, this has actually resulted in a much stronger capital base with a higher level and quality of earnings.

Prior to 2015, Gulf Bank was rated A+ by Fitch Ratings. In June 2015, the Bank received a score upgrade from Standard & Poor's to "A-" from "BBB+". Hence, Gulf Bank ended 2015 with 3 "A" scores from the three leading global credit rating companies.

"Our 2015 client satisfaction survey results revealed a marked improvement in service throughout all customer touch-points, and a decline in problems. This reveals that our brand name health has actually enhanced significantly, as demonstrated by an increased Net Promoter Score (NPS), especially amongst priority clients. Based upon consumer feedback, we have made a significant investment in a new state-of-the-art mobile banking app and electronic banking platform, both of which will be released in 2016.

"Consumer Banking continued its strong efficiency in 2015 with double digit growth in interest income and intensified yearly growth in loans of 14 % considering that 2012. Following the testimonial and re-launch of 2 of our core client recommendations in early 2015, we saw 12 % growth in our Kuwaiti Salary new accounts, and 52 % growth in the Red (student) accounts. We likewise introduced our new Gulf Rewards commitment program, which includes Gulf Points for the fastest totally free flights in Kuwait, along with "Entertainer", Kuwait's first geo-locator mobile application offering special deals in Kuwait, UAE and London. There was net development in Wholesale Banking, regardless of the purposeful decrease in high-risk sectors. Wholesale has worked hard to further improve its suite of products and services, in addition to streamline its operations to deliver faster and more reliable client service. This has resulted in strong development in cash management and electronic banking profits. Wholesale Banking's updated automated income process system now makes it possible for business clients to process salaries online. In addition, the Wholesale Bank remains actively taken part in the construction sector and the "Kuwait Development Plan," financing a lot of the essential jobs in Kuwait.

Awards.
"I am pleased to report that our development in 2015 was once again seen by our peers and we received over 20 significant awards for our work across the entire spectrum of the Bank's activities, including consumer banking, wholesale banking, products, efficiency, marketing and personnels. These fored example awards from revered worldwide publications such as The Asian Banker; International Finance Magazine (IFM); International Banker; and Banker Middle East and shows the hard work and effort of the bank's workers.

Focus on Human Capital and Building Talent.
"In order to sustain and enhance our competitive advantage, we are concentrated on bring in, establishing, and retaining the best talent. Our latest staff member fulfillment survey revealed a boost in satisfaction from 78 % to 81 % throughout all areas of the Bank.

"We are extremely pleased that 64 % of our labor force is Kuwaiti and we are dedicated to increasing that portion and gender parity. Furthermore, we celebrated the first graduates from our Graduate Development Program for skilled Kuwaiti nationals (now called Ajyal).

Events and Corporate Social Responsibility.
"During the year, the Bank was likewise heavily dedicated to various community events focusing on youth, education, health and wellness, helping the underprivileged, women's empowerment, and promoting Kuwait's heritage and culture. For example, in order to raise awareness about health and wellness, the Bank sponsored the very first Gulf Bank 642 Marathon, Kuwait's very first and only full road race to be worldwide accredited by the world's governing body for marathons, which attracted over 2,400 participants.

"During the year the Bank also continued its long term dedication to INJAZ - Kuwait, with a high level of staff member volunteers, preserving its position as lead sponsor. Gulf Bank was also a platinum sponsor of the National Union of Kuwaiti Students (NUKS) conference in the USA, and a sponsor of the Tmkeen Youth Empowerment Symposium, a Kuwaiti initiative provided by youth to the youth in Kuwait, and we also sponsored the Jahazeen 2 training and development program, which was kept in cooperation with Kuwaiti's Manpower and Government Restructuring Program (MGRP)".

"With all these accomplishments and global acknowledgments, the Bank is well placed to continue into the next phase of its growth. Looking ahead, amazing developments are underway, with our clients at the center of our efforts.".

In conclusion, Mr Alghanim said: "I wish to take this opportunity to express my recognition to our Board of Directors and our Shareholders for their dedication and commitment. I would also want to thank our valued consumers for their continued rely on our products and services. All of this progress would not have actually been possible without the work of our dedicated staff; I thank them for their services and for being part of the Gulf Bank family.".