Gulf International Bank B.S.C. (GIB) reported a net profit of $12.8 million for the first quarter of 2022 attributable to the shareholders of the parent, compared to a net profit of $7.9 million in the prior year period, an increase of 62% due to higher net interest income and net fee and commission income. The consolidated GIB Group recorded a net profit of $21 million compared to a net profit of $14.1 million in the same period last year, an increase of 49%.
Total revenues of $109.0 million for the three months were $18.4 million or 20% up on prior year with increases recorded in almost all revenue categories. The year-on-year increase in the bank’s core revenue reflects the continued progress in implementing the bank’s strategic transformation plan.
Trading income at $9.8 million was in line with the prior year and comprised gains on investments in funds managed by the bank’s Saudi-Arabian based subsidiary (GIB Capital) and London-based subsidiary (GIB UK). Other income of $3.5 million for the three months was 94% or almost double prior year levels due to a strategic and focused approach on monetising recoveries from previously written-off loans.
The bank’s funding profile remained robust in the first quarter of 2022 with customer deposits of $22.3 billion comprising the majority of the Bank’s deposit base. GIB’s strong funding position demonstrates the confidence of the Bank’s customers and counterparties, based on its strong ownership and financial strength. This provides a stable platform for the growth expected in the remainder of the year and is reflected in the liquidity coverage ratio of 139.0% and the net stable funding ratio of 142.6%, both significantly above regulatory limits. The Basel 3 total capital adequacy ratio at the quarter end was strong at 16.6%.
Gulf International Bank B.S.C. is a pan GCC universal bank established in 1975 and regulated by the Central Bank of Bahrain. GIB’s services are delivered across the GCC and international markets through its subsidiaries: GIB Saudi Arabia, GIB (UK) Ltd. Additionally, the bank has branches in London, New York, and Abu Dhabi, in addition to a representative office in Dubai. GIB is owned by the governments of the Gulf Cooperation Council countries, with Saudi Arabia’s Public Investment Fund being the primary shareholder.
