GIB reports $41.7m profit for H1

Gulf International Bank BSC (GIB) reported consolidated net income after tax of $41.7 million for the six months ended June 30, 2016, compared to $47.3 million in the prior year period. Net income after tax in the second quarter was $31.2 million compared to $20.9 million in the prior year period. 
Total income at $151.4 million for the six months was $2.4 million up on the prior year with year-on-year increases recorded in all income categories with the exception of fee and commission income, and foreign exchange income.
Net interest income at $91 million for the six months was $5.4 million or 6 percent up on the prior year period.
The year-on-year increase in net interest income reflected increases in both loan volumes and loan margins as the bank continues to reorientate its lending activities from transactional-based long-term project and structured finance to relationship-based large and mid-cap corporates.
Fee and commission income at $32.6 million was $6.5 million lower than in the prior year, although it comprised more than 20 percent of total income.
The year-on-year decrease in fee and commission income was principally due to a difference in the timing of investment banking fees that are due to arise later in 2016 compared to 2015.
Foreign exchange income at $9 million was $2.8 million lower than in the prior year period.
Income in H1 2015 was at an exceptionally high level.
Trading income at $4.6 million was $0.2 million, up on the prior year period. Total expenses at $102.3 million for the six months were $11.3 million or 12 percent up on the prior year period. 
Consolidated total assets at the half year end were $23.3 billion, being $0.9 billion lower than the 2015 year end level. Investment securities at June 30, which principally comprised highly rated and liquid debt securities issued by major financial institutions and regional government-related entities, amounted to $4.1 billion.
Loans and advances amounted to $9.5 billion, being $0.4 billion or 4 percent higher than at the 2015 year end.
The bank’s funding profile continued to be resilient in H1, 2016.
GIB is a major bank in the Middle East with its principal focus on the GCC states. It is owned by the six GCC governments, with the Public Investment Fund of Saudi Arabia holding a majority stake (97.2 percent).

Source: Arab News