GIB posts 15% increase in 9-month net income

Gulf International Bank’s (GIB) consolidated net income after tax reached $ 97 million for the nine months ended Sept. 30, 2012.
This is an increase of $ 12.4 million or 15 percent from the comparable prior year period, said a bank statement.
Net income after tax in the third quarter was $ 39 million compared to $ 22.2 million in the third quarter of 2011.
Year-or-year increases were recorded in all income categories with the exception of a small decrease in other income.
Net interest income at $ 108.8 million for the nine months was 3 percent up on the prior year period.
During the third quarter, loans and advances, the principal source of the bank’s net interest earnings, increased by $ 411 million or 6 percent.
The growth in the loan portfolio reflected the leveraging of GIB’s expertise to serve the bank’s large and mid-cap customers.
Fee and commission income at $ 40.7 million was $ 3.7 million or 10 percent higher than in the prior year period.
As a result, fee-based income comprised more than one-fifth of total income, reflecting the successful implementation of GIB’s new strategic focus on non-asset based, relationship-oriented services and on supporting customers’ commercial and trade finance requirements.
In particular, a 27 percent year-on-year increase was recorded in commissions on letters of credit and guarantee.
Foreign exchange income at $20 million was $ 11.6 million up on, or almost two-and-a-half-times, the prior year level.
GIB Chairman Jammaz Al-Suhaimi said: “We are pleased to report continued ongoing profitability in the first nine months of 2012 despite the impact of the initiatives we took in the past couple of years to derisk the wholesale lending portfolio and improve the funding profile of the bank, while at the same time investing in the future of the bank through new strategic initiatives.”
Consolidated total assets at the quarter end were $ 17.9 billion, being $ 1.2 billion or 7 percent higher than the 2011 yearend level.