It said net income after tax in the second quarter was $36.6 million, representing a $7.1 million or 24 percent increase over the second quarter profit in 2010.The year-on-year increase in net income was attributable to increases in all income categories, with the exception of net interest income, and a lower net provision charge. Net interest income at $74.1 million for the six months was 15 percent down on the prior year period. According to the statement, the year-on-year decrease was attributable to a lower average loan volume and an increase in the cost of term finance as a result of initiatives to further minimize the mismatch in the maturity profile of the bank’s assets and liabilities. While these initiatives have resulted in an additional cost, they have significantly reduced the bank’s reliance on short-term wholesale funding and will ensure compliance with the new Basel 3 regulatory rules on liquidity risk management well ahead of the planned implementation deadlines. The impact on income of the reduction in the loan volume was partly offset by an increase in loan margins. Fee and commission income at $26.5 million was $9.6 million or 57 percent higher than in the prior year period. As a result, fee-based income comprised almost one quarter of total income, reflecting continued success in the implementation of GIB’s new strategic focus on non-asset-based, relationship-orientated services. Significant year-on-year increases were recorded in both trade finance and investment banking fees. Trading income at $9.8 million was $3.9 million or 66 percent up on the prior year, reflecting strong customer-related foreign exchange revenues. Total expenses at $55.3 million for the six months were nine percent up on the prior year period. The year-on-year increase in expenses reflected ongoing investment in the implementation of GIB’s new GCC-focused universal banking strategy. Consolidated total assets at the half-year end were $17.4 billion, being $1.8 billion or 12 percent higher than the 2010 year-end level. The asset profile at June 30, 2011 reflected an exceptionally high level of liquidity. Cash and other liquid assets, and short-term placements totaled $6.6 billion, representing a very high 38 percent of total assets. Investment securities at June 30, which principally comprised highly rated and liquid debt securities issued by major financial institutions and regional government-related entities, amounted to $3.4 billion. The bank has no exposure to troubled European government debt and has accordingly not been impacted by the recent turmoil in the European debt market.