Gulf International Bank reports a first half profit of $41.7 million

Press release
Published August 14th, 2016 - 08:39 GMT
Gulf International Bank
Gulf International Bank

Gulf International Bank B.S.C. (GIB) reported consolidated net income after tax of $41.7 million for the six months ended 30th June 2016, compared to $47.3 million in the prior year period. Net income after tax in the second quarter was $31.2 million compared to $20.9 million in the prior year period.

Total income at $151.4 million for the six months was $2.4 million up on the prior year with year-on-year increases recorded in all income categories with the exception of fee and commission income, and foreign exchange income. The year-on-year increase in the Bank’s core income reflects the successful progress in the implementation of the new business strategy to transform GIB into a leading pan-GCC universal bank providing innovative customer-centric solutions.

Net interest income at $91.0 million for the six months was $5.4 million or 6 per cent up on the prior year period. The year-on-year increase in net interest income reflected increases in both loan volumes and loan margins as the Bank continues to successfully reorientate its lending activities from transactional-based long-term project and structured finance to relationship-based large and mid-cap corporates. Fee and commission income at $32.6 million was $6.5 million lower than in the prior year, although comprised more than 20 per cent of total income. The year-on-year decrease in fee and commission income was principally due to a difference in the timing of investment banking fees that are due to arise later in 2016 compared to 2015. Foreign exchange income at $9.0 million was $2.8 million lower than in the prior year period. Foreign exchange income principally comprised revenue derived from customer-related activities, and in particular revenues derived from structured products designed to assist customers in hedging their foreign exchange exposures in the current volatile markets. Income in the first half of 2015 was at an exceptionally high level. This decrease was, however, partly compensation by higher revenue derived from customer-related interest rate derivative activities that is classified in trading income. Trading income at $4.6 million was $0.2 million up on the prior year period. In addition to revenue derived from customer-related interest rate derivative activities, trading income comprised gains on an investment in a fund managed by the Bank’s London-based subsidiary GIB (UK) Limited. Other income of $14.2 million for the six months compared to $8.1 million in the prior year period. Income for the period included an exceptional, one-off $8.5 million recovery relating to a previously written off loan. The remaining other income for the period principally comprised dividends on equity investments.

Total expenses at $102.3 million for the six months were $11.3 million or 12 per cent up on the prior year period. The year-on-year increase in expenses was attributable to costs associated with new core banking and treasury IT systems infrastructure that went live in the third quarter of 2015, and the on-going investment in the implementation of GIB’s new retail banking proposition. As a result of recent actions taken to minimise expenses, the year-on-year increase in total expenses will be more subdued in the second half of the year. The provision charge for the first half of the year was $3.9 million being $6.0 million less than the provision charge in the first half of 2016.

Consolidated total assets at the half year end were $23.3 billion, being $0.9 billion lower than the 2015 year end level. The asset profile at 30th June 2016 reflected a high level of liquidity. Cash and other liquid assets, and short-term placements totalled $9.1 billion, representing an exceptionally high 39 per cent of total assets. Investment securities at 30th June, which principally comprised highly rated and liquid debt securities issued by major financial institutions and regional government-related entities, amounted to $4.1 billion. Loans and advances amounted to $9.5 billion, being $0.4 billion or 4 per cent higher than at the 2015 year end, reflecting new relationship-based large and mid-cap corporate loans. The Bank’s funding profile continued to be resilient in the first half of 2016 with customer deposits of $13.1 billion comprising 82 per cent of total deposits. Securities sold under agreements to repurchase (repos) decreased by $0.5 billion during the first six months of 2016 to $1.6 billion at 30th June 2015. The decrease in repos reflected a strategic initiative to increase the level of intra-group repos in order to minimise the related funding costs. A $0.3 billion increase in senior term financing was due to a new $0.5 billion Saudi Riyal denominated bond issue, net of the maturity of a $0.2 billion term finance facility in the first quarter. GIB’s robust funding position demonstrates the confidence of the Bank’s customers and counterparties based on its strong ownership and financial strength. The Basel 3 total and tier 1 capital adequacy ratios at the half year were an exceptionally strong 17.0 per cent and 16.1 per cent respectively.

Gulf International Bank (GIB) is a leading bank in the Middle East with its principal focus on the Gulf Cooperation Council (GCC) states. The Bank is owned by the six GCC governments, with the Public Investment Fund of Saudi Arabia holding a majority stake (97.2 per cent). In addition to its main subsidiaries Gulf International Bank (UK) Ltd. and GIB Capital, the Bank has branches in London, New York, Dhahran, Riyadh, Jeddah and Abu Dhabi, in addition to representative offices in Dubai and Beirut.

Background Information

Gulf International Bank

Gulf International Bank B.S.C. (GIB) was established in the Kingdom of Bahrain in 1975, and commenced operations in 1976. In 2017, GIB became the first foreign domiciled bank to be granted approval from the Saudi Arabia Council of Ministers to establish a local commercial bank in the Kingdom of Saudi Arabia.

Consequently, GIB's branch offices in the Kingdom will become part of the Saudi Arabian subsidiary, with the country headquarters located in Al Dhahran.

للسبت الـ15.. احتجاجات السترات الصفراء تتواصل في فرنسا

Published February 23rd, 2019 - 09:46 GMT
من احتجاجات السترات الصفراء في فرنسا
من احتجاجات السترات الصفراء في فرنسا

يواصل الآلاف من محتجي حركة "السترات الصفراء" تظاهراتهم للأسبوع الخامس عشر على التوالي في العاصمة باريس ومدن فرنسية أخرى.

وقالت الشرطة في بيان، "أعلن في باريس عن خمس تظاهرات، ثلاث منها بشكل تجمعات، أما المسيرتان الأخريان اللتان سميتا على موقع فيسبوك للتواصل الاجتماعي "تسونامي أصفر" و"كلنا في الشانزيليزيه لا نتراجع عن شيء"، فستنطلقان من قوس النصر ظهر اليوم السبت على التوالي وتنتهيان في ساحة تروكاديرو".

وأضاف البيان أن هذه المسيرات ستعبر جادة الشانزليزيه وحي الأوبرا وتلتف حول متحف اللوفر وتتوقف أمام مقر "حركة شركات فرنسا" ثم تواصل طريقها إلى ساحة تروكاديرو.

من جهتها قالت وزارة الداخلية الفرنسية بشان الأرقام التي تنشرها، إن حجم التظاهرات تراجع في أيام السبوت الأربعة الأخيرة.

بدورهم أعلن أربعة آلاف شخص من رواد مواقع التواصل الاجتماعي مساء الجمعة عبر فيسبوك عن نيتهم المشاركة في هذه التجمعات، وقال أكثر من 18 ألفا آخرين إنهم "مهتمون" بها.

وذكرت مواقع التواصل أنه ستُنظم تجمعات في مدن أخرى غير العاصمة، مثل بوردو، التي تعد مع تولوز من مواقع التعبئة الكبرى التي تشهد باستمرار صدامات عنيفة مع قوات الشرطة.

من جهتها أبلغت نقابة شرطة بوردو المسؤولين مساء الجمعة عن "الوضع الحرج" و"الإنهاك المعنوي والجسدي" لرجال الشرطة، مطالبة بوسائل أكثر فاعلية لمواجهة "حرب العصابات في المدن".

لكن وزير الداخلية الفرنسي كريستوف كاستانير صرح خلال زيارة إلى ضاحية أوبرفيلييه شمال شرقي باريس "إذا كان البعض يعتقدون أن رجال الشرطة سينهكون وسيتم استنزافهم، فهم مخطئون"، مؤكدا أن "رجال الشرطة سيكونون حاضرين وسيقومون بمهامهم".

يشار إلى أن 41 ألف شخص تظاهروا في فرنسا السبت الماضي، مقابل 282 ألفا في 17 نوفمبر أول يوم للتحركات الاحتجاجية الاجتماعية، بحسب بيانات رسمية


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