Gulf Bank disclosed that it has completed the sale of the Fahaheel property (Khabari land project, an area of 231,809 sqm) for KWD90mn. The buyer of the land is United Real Estate Company, a subsidiary of KIPCO. There is no material financial impact for the bank from the sale of the land since the sale price is not materially different from the carrying value as established when the deed was acquired. Gulf Bank had disclosed on 19 November that the property was registered under the bank’s name, what could result in an operating gain of KWD36.5mn (this is a large number as our estimate for FY18 earnings is KWD43mn). We do not yet know whether Gulf Bank will be booking the whole gain in the income statement or whether it will be requested to set aside some of this amount as provisions. 

Elena Sanchez-Cabezudo, CFA