Gulf International Bank Reports Record Growth Of 108%

In the fourth quarter of 2022, the Bank reported net income attributable to the Shareholders of the Bank of $28.0 million, compared to a loss of $1.0 million in the same period last year. All revenue categories exceeded planned growth, with net interest income of $110.1 million up 67% due to effective balance sheet management, increased spreads and the benefit of rising interest rates. Fee and commission income reflected growth of 6%, and foreign exchange income and other income showed similar growth trends as the Bank continues to diversify revenues by investing in and building on capital-lite business lines. Trading income in the last quarter rebounded after a volatile year. 

During the fourth quarter of 2022, the basic and diluted earnings per share attributable to the Shareholders of the Bank amounted to US 1.12 cents compared to a loss of US 0.04 cents for the same period last year. Total comprehensive income attributable to the Shareholders of the Bank during the quarter of $12.9 million compared to $3.1 million for the same period last year representing an increase of 316%.  

For the year ended 31st December 2022, GIB reported a net profit of $78.7 million attributable to the Shareholders of the Bank, compared to $37.9 million being 108% up on last year. GIB’s financial performance demonstrated the Bank’s progress in successfully implementing initiatives and measures to increase shareholder returns. Growth across all business lines contributed to a 32% increase in revenues, and coupled with increased efficiencies and measured investment, the Group’s net income for the year amounted to $96.1 million compared to $52.7 million in 2021. Fee and commission income of $101.4 million was 40% up on the previous year, reflective of benefit realisation of investments in financial markets activities, risk distribution, retail and global transaction banking. Also, as a result of successful diversification initiatives, the Group reported an 84% increase in foreign exchange income and a 71% increase in recoveries on written-off loans, the latter being the result of the successful establishment of a ‘Special Assets Unit’. The quality of earnings improved despite a market-driven trading loss of $6.8 million compared to a $30.7 million gain in 2021. This is a testament to the resilience and success of the Bank’s business model. 

The Banks continued investment in technology, business and human capital led to the planned increase in total expenses to $346.5 million compared to $296.7 million last year. The provision charge for the year of $71.6 million compared to a $45.7 million charge last year and reflects the Bank’s proactive and prudent management of risk, resulting in a marked increase in the provision coverage ratio and reducing the NPL ratio to 1.6%. 

Basic and diluted earnings per share attributable to the Shareholders of the Bank of US 3.15 cents compared to US 1.52 cents per share in 2021. Total comprehensive income attributable to the Shareholders of the Bank of $76.2 million compared to $64.8 million last year representing an increase of 18%.

The Bank maintained an effective and more diverse funding profile in 2022, with customer deposits of $21.9 billion comprising the majority of total deposits and a marked increase in non-interest-bearing deposits. GIB’s strong funding position demonstrates the ongoing confidence of the bank’s customers and counterparties, whilst all regulatory ratios (liquidity coverage ratio of 299.3%, net stable funding ratio of 161.5% and capital adequacy ratio of 17.3%) are all indicative of planned future growth. To further diversify funding sources, and implement on its sustainability strategy, the Bank secured a US$ 200 million sustainability-linked repo facility, one of the first of its kind in the GCC. 

Other sustainability successes include GIB Saudi Arabia being the only commercial bank supporting Lucid Motor’s first international manufacturing plant at King Abdullah Economic City, one of many steps the Bank is taking in embedding sustainable finance throughout its regional footprint. 

GIB BSC’s CEO Jamal Alkishi commented “2022 was a landmark year for GIB. After several years of diligently pursuing our strategy and investing in the Bank’s future, 2022 was, I believe, the year when this hard work and focus began to come to fruition and marked the beginning of the next chapter of GIB’s story.” GIB is owned by the governments of the Gulf Cooperation Council countries, with Saudi Arabia’s Public Investment Fund being the main shareholder.