Bahrain-based Gulf International Bank (GIB) on Sunday announced a net profit of $98.1 million in the first nine months of this year, up 58.7 percent on the same period in 1999.
The sharp rise in profit was attributed to "a substantial increase in other income, which more than doubled to $108.9 million," GIB said in a statement.
"The year-on-year rise in other income reflected substantial profits generated by trading activity in securities and equity, particularly in GIB's London-based Saudi International Bank, which has been renamed GIB-UK," it said.
Last year's nine-month profits of $61.8 million included GIB-UK contributions for six months only.
GIB, a subsidiary of Kuwait-based Gulf Investment Corp. (GIC), acquired GIB-UK in March 1999 in a cash and share deal aimed at creating one of the region's largest corporate banks.
Total consolidated assets of GIB decreased slightly to $14.498 billion on September 30, 2000, down from $15.679 billion at the end of 1999, "following a temporary rise in the balance sheet due to year-2000 related factors."
GIC has a 72.5 percent stake in GIB, the Saudi Monetary Agency (central bank) 22.2 percent, and JP Morgan Overseas Capital Corp. of the United States the remaining 5.3 percent.
Before the acquisition of GIB-UK, GIB was wholly owned by GIC, which belongs to the six Gulf Arab oil monarchies: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates. — (AFP)
© Agence France Presse 2000
© 2000 Mena Report (www.menareport.com)