Gulf International Bank (GIB) said on Tuesday that its net profit attributable to shareholders surged by 23% to reach $41 million in Q 2024 compared to $33.4 million in the same period last year, supported by growth in net interest income.
Growth in the quarter was complemented by a 3% increase in net fee and commission income, which rose to $24.5 million.
GIB said these gains were further bolstered by a significant reduction in provisions for the quarter, which decreased from $29.1 million in Q2 2023 to just $1.2 million. This prudent approach to risk management contributed to a consolidated net profit of $48 million for the Group, marking a 20% increase from $39.9 million in the previous period.
The bank’s basic and diluted earnings per share increased to $2.05 cents, compared to $1.67 cents per share in the same period last year. Total comprehensive income attributable to shareholders rose by 2% to $39.3 million, reflecting the bank’s ongoing commitment to enhancing shareholder value.
Net profit attributable to shareholders increased by 9% to $88.5 million in H1 2024 compared to $81.2 million in the previous year. Net income for the first half reached $106.3 million, up 10% from $96.5 million in the same period last year.
GIB’s net interest income grew by 9% to $260 million, driven by higher net interest margins on core business and improved lending margins. Net fee and commission income expanded by an impressive 35% to $64.4 million, underscoring the success of GIB’s diversification strategy.
The growth led to an increased fee income to gross income ratio of 18%, up from 14%, and a fee income to total expenses ratio of 31%, compared to 26% previously. Similarly, other income of $6.5 million significantly exceeded the prior period’s $3.2 million, primarily due to recoveries from previously written-off exposures.
Total consolidated assets at the end of the first half were $45.7 billion, a 3% decrease from $47.1 billion in December 2023. Cash and liquid assets, including short-term placements, reached $22.9 billion, representing 50% of total assets.
GIB continued to capitalise on its strong funding profile, with customer deposits reaching $32.3 billion. The bank’s robust funding position demonstrates the confidence of its customers and counterparties based on its strong ownership and financial strength.
