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BackGIB REPORTS NOTABLE GROWTH AND STRATEGIC SUCCESS WITH NET PROFIT ATTRIBUTABLE TO THE SHAREHOLDERS OF THE BANK OF $88.5 MILLION IN THE FIRST HALF
In the second quarter of 2024, the Bank demonstrated a robust growth trajectory, successfully navigating competitive market conditions and achieving its strategic goals. The net profit attributable to shareholders surged to $41 million, reflecting a 23% increase from $33.4 million in the same period last year. This notable performance was driven by an 11% rise in net interest income, which reached $131.3 million due to effective balance sheet management. Additionally, net fee and commission income rose by 3% to $24.5 million. Provisions for the quarter were $1.2 million, down from $29.1 million in Q2 2023, contributing to a consolidated net profit of $48 million for the Group, up 20% from $39.9 million in the previous period.
Basic and diluted earnings per share for shareholders of the bank increased to $2.05 cents, compared to $1.67 cents per share in the same period last year. Total comprehensive income attributable to Shareholders of the Bank rose by 2% to $39.3 million from $38.7 million in the prior year.
In the first half of 2024, the Bank's performance highlighted its commitment to enhancing and diversifying core revenue streams, leading to improved shareholder returns. Net profit attributable to Shareholders of the Bank increased by 9% to $88.5 million compared to the previous year's $81.2 million. Net income for the first half reached $106.3 million, up 10% from $96.5 million in the same period last year.
Net interest income grew by 9% to $260 million, due to higher net interest margins on core business, a dynamic balance sheet structure, and improved lending margins. Net fee and commission income expanded by 35% to $64.4 million, reflecting the Bank's successful diversification strategy and resulting in an increased fee income to gross income ratio of 18%, up from 14% previously, and a fee income to total expenses ratio of 31%, compared to 26% before. Other income of $6.5 million significantly exceeded the prior period’s $3.2 million, mainly due to recoveries from previously written-off exposures.
Operating costs for the six months rose by 16% to $211 million, reflecting the Bank's investments in technology and business development to build a stronger future.
The provision charge of $16.8 million for the first half, down from $47.6 million in June 2023, underscores the Bank’s prudent risk management and aligns with a reduced non-performing loan ratio to 1.7%.
Basic and diluted earnings per share attributable to Shareholders of the Bank reached $4.43 cents compared to $4.06 cents per share in the prior period.
Total comprehensive income attributable to Shareholders of the Bank stood at $84.5 million, down 3% from $87.4 million in the prior year.
Total shareholders' equity, excluding minority interest, increased by 4% to $2.5 billion from $2.4 billion in December 2023, including reserves and retained earnings of $453.1 million, which account for 23% of capital.
Total consolidated assets at the end of the first half were $45.7 billion compared to $47.1 billion, a 3% decrease from December 2023. Cash and liquid assets, including short-term placements, reached $22.9 billion, representing 50% of total assets compared to 53% in December 2023. Investment securities of $6.9 billion were primarily comprised of highly rated and liquid debt securities issued by major financial institutions and regional government-related entities. Loans and advances grew by 2% to $13.9 billion.
GIB continued to capitalize on its strong funding profile in the first half of 2024, with customer deposits reaching $32.3 billion. The Bank's robust funding position demonstrates the confidence of the Bank's customers and counterparties based on its strong ownership and financial strength. The liquidity coverage ratio of 129.4%, net stable funding ratio of 154.6% and Basel 3 total capital adequacy ratio of 16.7% are well above the regulatory limit.
The financial statements for the first half of 2024 were reviewed by the external auditors Ernst & Young (EY) and comply with International Accounting Standard (IAS) 34 - Interim Financial Reporting.
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, Abu Dhabi and Oman in addition to a representative office in Dubai.
GIB is owned by the sovereign wealth funds/governments of the Gulf Cooperation Council countries (GCC), with Saudi Arabia’s Public Investment Fund (PIF) being the primary shareholder.