Gulf Bank of Kuwait expects 17.3 percent decline in Q2 profit due to higher costs
Date
7/25/2024 6:06:14 AM
(MENAFN) Gulf bank of Kuwait reported a significant decline in its second-quarter profits for 2024, with earnings falling by 17.3 percent to KWD 15.341 million (about USD50.18 million), down from KWD 18.542 million in the same period last year. This drop in profitability highlights the financial pressures the bank is facing amid a challenging economic landscape.
In a statement to the Kuwait Stock Exchange, the bank revealed its semi-annual net profit for the six-month period ending June 30, 2024, was KWD 28.215 million. This is a decrease from KWD 35.846 million reported during the same timeframe in 2023. The bank attributed the profit reduction to several factors, including increased provisions and impairment losses totaling KWD 11.3 million, as well as a rise in operating expenses by KWD 1.4 million. While operating revenues did increase by KWD 4.6 million, this growth was not enough to counterbalance the higher costs and provisions.
The financial strain experienced by Gulf Bank of Kuwait underscores the broader challenges within the banking sector, as rising costs and increased provisions have overshadowed the benefits of higher revenues. This situation reflects the bank's struggle to maintain profitability amid a complex economic environment.
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