The Kuwait-based Gulf Investment Corp. (GIC) on Sunday, April 8, announced a 47-percent surge in net profit to $111.7 million in 2000, after excluding $44.3 million of exceptional gain from the previous year.
Excluding the gain arising in 1999 "on the change of GIC's shareholding in its Bahrain-based majority-owned subsidiary, Gulf International Bank (GIB), the 2000 results reflected a year-on-year increase of 47 percent," GIC said in a statement.
Saudi Finance Minister and GIC chairman Ibrahim Al-Assaf attributed the GIC results to its "success in diversifying its sources of income."
Chief executive officer Khalid Al-Fayez said "the timely scaling down of exposures to global equity markets combined with efforts to enhance fee-based income ... were the primary contributors to 2000 income." "The group has consistently endeavored to optimize its mix of risk assets and is well positioned to take advantage of the opportunities that may arise in the coming year," Fayez said.
Total assets at the end of 2000 grew slightly to $19.6 billion from $19.5 billion in 1999. GIC's assets at the end of 1998 stood at $13.5 billion. The surge in assets in 1999 was largely due to the GIB's acquisition of Saudi International Bank (SIB) in March of that year.
The group declared a dividend of $60 million for 2000, a year which saw GIC invest in seven new projects, the most significant being the acquisition of a 50-percent stake in the Gulf Industrial Investment Co. worth $183 million.
GIC is equally owned by the Gulf Cooperation Council, which groups Kuwait with Bahrain, Oman, Qatar, Saudi Arabia and the United Arab Emirates. It is active in regional and international financial and capital markets. The corporation holds a 72.5 percent stake in GIB. — (AFP, Kuwait City)
© Agence France Presse 2001
© 2001 Mena Report (www.menareport.com)