Kuwait - August 14, 2012: Gulf Bank, the second largest bank in Kuwait, today announced an operating profit of KD58.7 million for the first half of 2012. The Bank further increased the precautionary reserve by KD34 million to reach KD124 million, in line with its strategic plan to create a "fortress balance sheet" and to further its capacity to grow and expand. The Bank's net profit was KD12.8 million against KD18.3 million over the same period 2011 due to the increase in precautionary reserve. The Bank's total assets reached KD4,876 million, deposits KD4,063 million and total shareholders' equity stands at KD440 million.

Commenting on these latest results, Mr. Mahmoud Al-Nouri, Gulf Bank's Chairman said: "The first half year results reflect the continued positive impact of our customer-centric strategy of providing the best and fastest banking services in Kuwait, as well as the efforts taken by the Bank's Board of Directors and various business groups, including Consumer Banking, Corporate, International Banking and Treasury."

"So far, 2012 is turning out to be positive, with improved results, enhanced provisions and major award wins for Gulf Bank since the beginning of the year. We are proud of our accomplishments and glad to see that our overall banking strategy is consistently delivering good results, despite the difficult economic conditions," Mr. Al-Nouri added.

"I would stress, with confidence, that Gulf Bank has restored its leading position in the local market in terms of product and service innovation. We will continue to exert efforts towards boosting such position. We will further continue our conservative plan to maintain a fortress balance sheet to help us expand, and enable us, at the same time, to protect the Bank against any unforeseen market effects," he continued.

"Looking ahead, we will be focusing on the needs of our customers, developing our customer base and delivering returns to our shareholders. We will also address new opportunities to grow and deliver excellence in corporate and consumer banking services to the Kuwait market."

"I would like to extend my profound thanks and appreciation to the Board Members for their continued support. I would also like to extend thanks and appreciation to the members of the executive management for their efforts and commitment to implement the prepared strategy, as well as all bank employees at all levels, for their commitment to provide the best and fastest service to our customers," he added.

"We are proud to see Mr. Michel Accad recently awarded 'Banker of the Year' from the Banker Middle East in 2012, as well as Mr. Surour Alsamerai, GM – HR, win the HR Professional of the Year Award, in addition to a number of important company and individual awards in 2012. These include: 'Bank of the Year' award from Arabian Business; 'Best Employee Development Programme' award for the second consecutive year, 'Best Retail Customer Service', 'Best SME Startup Package', 'J.P. Morgan Quality Recognition Award' for its operational excellence in MT103 and MT202 commercial payments for 2012 for the third consecutive year, '2011 EUR STP Excellence' Award from Deutsche Bank, and 'Best Retail Bank' from Asian Banker 2012," Mr. Al-Nouri concluded.

This press release has been issued by Gulf Bank.