Gulf International Bank has announced outstanding H1 results with a 108 percent increase in net income attributable to shareholders of the bank, exceeding the full year results of 2022.
In the second quarter of 2023, the positive trend continued as the net profit attributable to the bank’s shareholders surged to $33.4 million, an increase of 27 percent, surpassing last year’s $26.3 million for the same period. This impressive performance is due to a 58 percent growth in net interest income, reaching $121.5 million, driven by a favorable interest rate environment and improved margins. Additionally, the foreign exchange income increased by 45 percent to $9.4 million, primarily from customer-initiated foreign exchange contracts, and trading income improved to $12.9 million. The second quarter provisions reported a charge of $29.1 million, compared to a provision release of $0.9 million in the second quarter of 2022.
The basic and diluted earnings per share attributable to the bank’s shareholders amounted to $1.67 during the second quarter of 2023, up from $1.05 per share in the same period last year. The total comprehensive income attributable to shareholders of the bank during the quarter increased by 86 percent to $38.7 million compared to $20.8 million from the same period last year.
For the first half of 2023, the bank’s outstanding performance demonstrates its strategic focus on enhancing and diversifying its core revenue. The bank achieved a remarkable 108 percent increase in net profit attributable to shareholders of the bank, reaching $81.2 million compared to $39.1 million in the prior year period. The bank’s net income for the first half of 2023 reached $96.5 million, compared to $46.6 million for the same period last year, representing a 107 percent increase.
The net interest income at $241.9 million was 67 percent higher than the prior year, attributed to an efficient balance sheet structure, enhanced lending margins, and the rising interest rate environment.
The foreign exchange income of $19.7 million was higher than the prior year period, primarily due to positive traction in maximizing cross-sell activities. The trading income of $25.4 million was significantly higher than the trading loss recorded in 2022 of $3.9 million, primarily related to improved market value of equity funds managed by the bank’s Saudi-Arabian based subsidiary, GIB Capital, and the London-based subsidiary, GIB UK.
The total operating costs of $182.5 million for the six months were 18 percent higher than the prior period, reflecting the bank’s ongoing investment to support strategic growth and transformation.
The financial statements for the first half of 2023 were reviewed by the external auditors Ernst and Young and comply with International Accounting Standard 34 — Interim Financial Reporting.
