GULF INTERNATIONAL BANK RECORDS STRONG FIRST QUARTER RESULTS NET PROFIT ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT SOARED BY 273% TO $47.8 MILLION

Gulf International Bank B.S.C. (GIB) reported $47.8 million net profit attributable to the shareholders of the parent for the first quarter of 2023, compared to $12.8 million for the same period last year representing a record increase of 273%, driven by higher revenue across all business segments. The consolidated net profit of the GIB Group reached of $56.6 million during the first quarter compared to a net profit of $21.0 million in the same period last year, an increase of 170%. 

Total revenues of $172.2 million for the three months were $63.2 million or 58% up on prior year with increases recorded in all revenue categories. The year-on-year increase in the bank’s core revenue demonstrates the success in executing the bank’s strategic transformation plan. 

Net interest income grew by 77% to $ 120.4 million, due to effective asset liability management, balance sheet growth and favourable interest rates environment. Foreign exchange income of $10.3 million was higher than the prior year by 78% as a result of customer-related activities supported by a dedicated team of FX experts and a global network of offices and partners that enable the bank to offer competitive pricing and execution. Trading income at $12.5 million was up by 44% compared with the prior year and comprised gains on investments in funds managed by the bank’s subsidiaries. Other income of $5.0 million for the three months was 43% up from prior year levels being the result of asset recoveries efforts by the newly established ‘Special Assets Unit’.

Total expenses at $92.0 million for the three months were 24% higher than the prior year period and reflects the Bank’s continued investment in human capital, technology and business development to support implementing the Bank’s strategic initiatives. 

The provision charge for the first quarter was $18.5 million up by 89% with the provision charge in the first quarter of 2022 reflecting the Bank’s prudent approach to risk management. NPL ratio is at its lowest levels of 1.4% as of 31 March 2023 (December 2022:1.6%). 

Basic and diluted earnings per share attributable to the shareholders of the Bank is 2.39 cents compared to 0.51 cents per share in the prior year. Total comprehensive income attributable to the shareholders of the parent of $48.7 million compared to $29.4 million in the prior year representing an increase of 66%, driven by positive 2023 performance. 

Total shareholders’ equity excluding minority interest increased to $2.3 billion compared to $2.2 billion in December 2022 representing an increase of 2%. Reserves of $225.2 million and retained earnings of $45.1 million represent 11% and 2% of capital, respectively. 

Consolidated total assets at the quarter end were $37.0 billion, up 13% from December 2022 levels of $32.6 billion. Cash and other liquid assets, and short-term placements totalled $16.4 billion (44% of total assets), representing a continued high level of liquidity. Investment securities principally comprised highly rated and liquid debt securities issued by major financial institutions and regional government-related entities amounted to $6.4 billion at the end of the first quarter. Loans and advances amounted to $11.6 billion, being $0.1 billion or 1% higher than at the 2022 year-end. 

The bank’s funding profile remained healthy with customer deposits of $25.7 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 156.8% and the net stable funding ratio of 150.2%, both significantly above regulatory limits. The Basel 3 total capital adequacy ratio at the quarter end was strong at 16.4%. 

Fitch Ratings have upgraded the Long-Term Issuer Default Ratings (IDR) of Gulf International Bank Group and all its subsidiaries to 'A-' with a stable outlook following an action on the Saudi Arabia’s sovereign rating supported by banks strong financial position.

 
The financial statements for the first quarter of 2023 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, 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.