KUWAIT, 19 February 2007 — The Gulf International Bank (GIB) reported yesterday it had scored the highest rate of net profits since it was established in 2006, with post-tax profits of $255.5 million.
The GIB added in a statement that the rise in profits hit $52.5 million, about 26 percent, compared to 2005. It attributed the rise in profits to the increase of interest and non-interest revenues, rationalization of expenses, and the decline of allocations for credit losses.
Interest revenues have risen thanks to the remarkable growth in the volume of credit portfolio, especially for financing GCC-based projects.
It noted that the GIB total assets hit $24.8 billion by the end of 2006, marking a rise of $1.9 billion a year before owing to the growth in the volume of the credit portfolio. Loans were on the rise by $1.9 billion to $8.1 billion.
According to the statement, the rise reveals the role of the GIB in providing financing for projects in the Gulf in petrochemicals, gas, and buying of vessels and aircraft, besides Islamic financing services.
Shareholders rights hit $1.857 billion by the end of last year, the bank reports.
Each of the six GCC governments holds a 12,08 percent stake in GIB, while Saudi Arabian Monetary Agency (SAMA) holds the remaining 27.5 percent
Sheikh Ebrahim K. Al-Khalifa, GIB’s chairman and undersecretary at the Ministry of Finance, Kingdom of Bahrain, said: “2006 proved to be the most successful year in the bank’s history. This is the third consecutive year in which the bank has reported a record profit. Record financial results and sound strategic progress were supported by significant business achievements and organizational developments.”
“The overall year-on-year advance is all the more impressive when viewed in relation to GIB’s very conservative risk profile, and the increasingly competitive nature of the regional and international markets in which the bank operates. This clearly illustrates the soundness of the bank’s merchant banking strategy focused primarily on the Gulf Cooperation Council (GCC) states, which has successfully contributed to a diversification of earnings and sustained growth and profitability,” Al-Khalifa noted. GIB continued to provide enhanced returns in 2006.
