Gulf Bank and Warba Bank have formally agreed to assess the potential for a merger, marking a new phase of consolidation in Kuwait’s banking sector.

Both lenders notified Boursa Kuwait on 25 May that they would conduct feasibility studies and due diligence, with both filings becoming public on 26 May 2025. Trading in their shares was briefly suspended in line with local capital market regulations. The banks are now awaiting regulatory guidance from the Central Bank of Kuwait before proceeding to the next stages of evaluation.

In parallel disclosures, the banks said a merger could support sectoral growth, enhance competitiveness and reinforce the country’s Islamic finance footprint. Islamic banks account for 49% of total sector assets as of mid-2024, according to a recent analysis by Fitch Ratings.

The announcement follows a series of high-profile banking mergers in Kuwait, including Kuwait Finance House’s acquisition of Ahli United Bank in February 2024. Gulf Bank was previously associated with merger discussions involving Boubyan Bank in 2024, though those plans did not materialise.

Gulf Bank reported total assets of KD7.5bn at the end of 2024, a 4% increase from the previous year, while net profit fell to KD60.2m, a 16% annual decline. Warba Bank recorded 10% asset growth to KD5.3bn, with net profit rising 14% to KD22.4m.