Gulf International Bank (GIB) reported a consolidated net income after tax of $86.6 million for the nine months ending September 30, 2003. These results represent a 7.6 percent increase over the same period last year.
The increase in the profit for the nine months was attributable to substantially higher non-interest earnings and a lower level of provisions, stated a press release. Net income is reported after provisions for credit losses of $43.2 million.
Net interest income at $125.5 million was 17.1 percent down on the prior year period with improved margin income from both the core banking activity and the securities portfolio being more than offset by reduced interest earnings on the bank's net free capital resulting from the lower interest rate environment. Other income, at $93 million, was, however, 35.2 percent up on the prior year reflecting strong advances in both trading income and investment banking and management fees.
Established in 1975, GIB is a wholesale commercial and investment-banking group, with operations in the Middle East, Europe, North America and the Far East. The six Gulf Cooperation Council (GCC) governments—Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE)—own 72.5 percent of the bank, while the Saudi Arabian Monetary Agency (SAMA) and J. P. Morgan Overseas Capital Corporation own 22.2 percent and 5.3 percent respectively.
In 1999, GIB acquired the London-based Saudi International Bank and has branches in London, New York and Riyadh, in addition to representative offices in Singapore, Beirut and Abu Dhabi. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
