GIB reports 14 per cent increase in net profits

Gulf International Bank (GIB) reported consolidated net income after tax of $150.3 million for the six months ended June 30, representing an $18.7 million or 14 per cent increase over the prior year period.

The year-on-year advance reflected increases in interest and fee-based income, and a lower level of provisions for credit losses.  Net income for the period represented a return on average equity of 14.4 per cent.
Net interest income at $148.7 million was $29.6 million or 25 per cent up on the prior year period. 
Higher interest earnings were recorded by the bank’s GCC lending activities as a result of significantly higher loan volumes.
The robust pace of economic activity and growth throughout the Gulf region continues to provide a dynamic operating environment for the bank.
Fee and commission income of $41.8 million was $12.0 million or 40 per cent up on the prior year.
The significant year-on-year increase was attributable to strong asset and fund management fees, and corporate advisory fees. 
Fee and commission income represents the second largest income category and is an important and growing contributor to the Group’s earnings.
GIB continues to be the pre-eminent provider of financial advisory services for structured financings, privatisations, IPOs, and mergers and acquisitions.