Bahrain-based Gulf International Bank (GIB) on Sunday, February 11, announced a 74.7 percent surge in net profits for 2000 to $118.1 million from $67.6 million in 1999. The sharp increase in profit was attributed to "significant year-on-year increases in both interest and non-interest earnings," GIB said in a statement.
The rise in other income reflected "substantial profits generated by the group's securities, equities and derivative trading activities, particularly in GIB's London-based Saudi International Bank (SIB)," it said. Other income rose 64.5 percent to $127.3 million in 2000 from $77.4 million the previous year, while net interest income was 21.6 percent up at $30.1 million.
GIB, a subsidiary of Kuwait-based Gulf Investment Corp. (GIC), acquired Saudi International Bank (SIB) 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 $15.12 billion, "following a temporary rise in the balance sheet over the 199 year end due 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 SIB, 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
© 2001 Mena Report (www.menareport.com)
