DUBAI: In the third quarter of 2023, the Gulf International Bank’s dedication and commitment to achieving strategic objectives resulted in a remarkable 255% increase in net profit attributable to the Bank’s shareholders, totalling $41.2 million for the quarter, surpassing the previous year’s $11.6 million for the same period.

This outstanding achievement is primarily a result of a 42% increase in net interest income, amounting to $129.2 million, which is indicative of the positive tailwind from the interest rate environment and enhanced balance sheet spreads. Favourable trading income added $2.3 million, while other income increased to $8.5 million. The Bank reported provisions charge of $25.0 million for the third quarter, compared to $13.3 million in the third quarter of 2022.

The Bank has received upgraded ratings from Moody’s Investors Service (“Moody’s”), elevating both GIB’s long-term foreign currency deposit rating as well as the foreign currency senior unsecured debt rating to respected ‘A3’ from ‘Baa1’, while maintaining a positive outlook for both ratings. Moody’s ratings upgrade is attributed to the Bank’s sustained improvement in asset quality, risk and profitability indicators, robust core capital, favourable asset diversification, and supportive operating conditions. GIB takes pride in attaining these high ratings, emphasizing its dedication to providing long-term value to its shareholders.

Basic and diluted earnings per share attributable to the Bank’s shareholders reached US$2.06 cents during the third quarter of 2023, an increase from US$0.46 cents per share in the corresponding period last year. Total comprehensive income attributable to Shareholders of the Bank for the quarter surged by 195% to $38.7 million, compared to $13.1 million for the same period last year.

For the period ended 30th September 2023, the Bank’s outstanding performance demonstrates its successful strategic focus on enhancing and diversifying its core revenue.

The Bank achieved a substantial 141% growth in net profit attributable to Shareholders of the Bank, reaching $122.4 million compared to $50.7 million in the previous year’s period.

The Group’s net income for the nine-month period ending on September 30, 2023, reached $146.4 million, marking a 125% increase compared to $65.2 million for the corresponding period.

Net interest income at $371.1 million was 57% higher than in the previous period, attributed to an efficient balance sheet structure and the rising interest rate environment. Foreign exchange income of $28.2 million exceeded the previous year’s figures, primarily due to strategic initiatives aimed at maximizing cross-sell activities. Trading income amounted to $27.7 million, a significant increase compared to $11.7 million loss recorded in 2022, which was primarily related to the market value of equity funds managed by the Bank’s Saudi-Arabian based subsidiary (GIB Capital) and the London-based subsidiary (GIB UK).

The Bank remains committed to delivering an enhanced customer experience and continued its investment in transformation and strategic growth, resulting in higher total operating costs. Total expenses amounted to $277.8 million for the nine months, representing a 14% increase compared to the corresponding period.

The provision charge for the nine-month period was $72.6 million, compared to an $22.2 million charge in the previous year, reflecting the Bank’s prudent approach to risk management.

Basic and diluted earnings per share attributable to Shareholders of the Bank reached US$6.12 cents, compared to US$2.03 cents per share in the previous period. Total comprehensive income attributable to Shareholders of the Bank reached $126.1 million, compared to $63.3 million in the previous year, marking a 99% increase.

Total shareholders’ equity, excluding minority interest, increased by 6% during the period to reach $2.3 billion (compared to $2.2 billion as of December 31, 2022), including reserves of $220.0 million, which represent 11% of capital, and retained earnings of $127.7 million, representing 6% of capital.

As of September 30, 2023, consolidated total assets amounted to $46.1 billion, a 41% increase from the December 2022 level of $32.6 billion. Cash and other liquid assets, including short-term placements, reached $24.7 billion, representing a stable level of liquidity and accounting for 54% of total assets, in contrast to 41% as of December 31, 2022. Investment securities of $6.4 billion primarily consisted of highly rated and liquid debt securities issued by major financial institutions and regional government-related entities. Loans and advances grew by 9% during the period to reach $12.6 billion.

As of September 30, 2023, the Bank upholds a strong funding profile, with customer deposits totalling $33.5 billion, constituting the majority of total deposits. This solid funding position reflects the trust and confidence that the Bank’s customers and counterparties have in its strong ownership and financial stability. The Bank’s liquidity coverage ratio of 133.9% and a net stable funding ratio of 152.8% both surpass regulatory thresholds significantly, showcasing the Bank’s strong and resilient liquidity position. The Bank upholds a sound capitalization level, with a Basel 3 total capital adequacy ratio of 16.3% as of the end of the quarter.

The financial statements for the period ended 30th September 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 main shareholder.

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