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Warba Bank has announced that it has received the approval of the Central Bank of Kuwait to appoint a group of specialized advisory firms to conduct a feasibility study and due diligence review for the potential merger with Gulf Bank. This approval marks a key milestone in progressing the preparatory procedures for a possible merger between the two leading financial institutions.
The approval follows Warba Bank’s previous disclosure dated June 15, 2025, regarding the signing of a Memorandum of Understanding (MoU) with Gulf Bank to explore the feasibility of a merger. The step represents a pivotal moment in the path toward forming a fully integrated Islamic banking entity with the potential to compete on a regional and global scale.
The list of appointed advisors includes internationally and locally recognized institutions such as Bain & Company as Management Consultant, J.P. Morgan as Lead Financial Advisor, Al Shall Consulting as Local Investment Advisor, Clifford Chance as Lead Legal Advisor and Al Tamimi & Company as Local Legal Advisor.
Warba Bank achieved a major milestone with the announcement that Moody’s Investors Service, a leading global credit rating agency, has upgraded the Bank’s credit ratings across multiple categories. The decision reflects Warba Bank’s strong financial performance, robust capital base, improved profitability and consistently stable asset quality.
This comprehensive rating upgrade marks a new chapter in the Bank’s journey toward regional and global leadership in Islamic banking. Moody’s raised Warba Bank’s deposit rating from Baa2 to Baa1, upgraded the Baseline Credit Assessment (BCA) from ba3 to ba2, and increased the Local and Foreign Currency Counterparty Risk Rating from Baa1 to A3. The outlook has been revised to Stable.
Mr. Shaheen Hamad Al-Ghanem, Chief Executive Officer of Warba Bank, commented: “This upgrade is a global recognition of the remarkable progress Warba Bank has made in solidifying its position as a leading Islamic financial institution. It reflects the confidence that global markets have in our financial and operational strength and motivates us to continue delivering sustainable and high-quality results for our shareholders, customers and the national economy.”
He added: “The milestone is a testament to the dedication of every individual at Warba Bank, whose collective efforts have translated into measurable success. It represents an important indicator of our progress toward becoming a regional leader in Islamic banking.”
Al-Ghanem further emphasized: “We are proud to see Warba Bank’s name ranked prominently in global credit reports. This reflects our enduring commitment to good governance, innovation and digital transformation. The upgrade is not only a recognition of past performance, but a gateway to a future of new opportunities where we remain focused on sustainable growth and long-term value creation for our community.”
The upgrade of the BCA reflects exceptional shareholder backing, including support from government entities, and the successful recent capital increase. As of March 2025, the tangible common equity to risk-weighted assets ratio stood at 12.6%, indicating the Bank’s strong ability to absorb future challenges.
Warba Bank reported a return on tangible assets of 0.4% in March 2025, supported by enhanced operational efficiency and growing contribution from non-financing income streams. This demonstrates the Bank’s ability to maintain sustainable profitability.
The Bank maintained a low non-performing financing ratio of 1.5% with a strong coverage ratio of 166%, underscoring its prudent risk management and conservative credit policies.
Moody’s stable outlook reflects expectations of continued strong performance in asset quality, liquidity, and capital adequacy over the medium term, supported by a resilient business model and a promising operating environment.
Warba Bank remains a driving force in supporting Kuwait’s economy by providing innovative, Sharia-compliant banking and investment solutions. With one of the largest shareholder bases among local banks, Warba continues to grow its leadership in digital Islamic banking, combining trust, innovation, and social responsibility to deliver world-class financial services.
