GULF INTERNATIONAL BANK REPORTS RECORD FINANCIAL RESULTS MARKING 78% INCREASE IN NET PROFIT ATTRIBUTABLE TO THE SHAREHOLDERS OF THE BANK

In the fourth quarter of 2023, the net income attributable to the Shareholders of the Bank was $17.6 million, compared to $28.0 million in the same period of the preceding year, a 37% slimdown. Fourth quarter’s results are primarily driven by 16% surge in net interest income propelled by effective management of the balance sheet, widened balance sheet spreads, and favourable interest rates conditions. Trading income recorded notable increase due to positive market conditions, while fees and commission income experienced a modest uptick. 

During the fourth quarter of 2023, the basic and diluted earnings per share attributable to the Shareholders of the Bank were US 0.88 cents compared to US 1.12 cents for the same quarter of the preceding year. Total comprehensive income attributable to the Shareholders of the Bank during the quarter amounted to $20.9 million compared to $12.9 million for the same quarter of the preceding year, representing a 62% increase.

For the year ended 31st December 2023, GIB reported net profit attributable to the Shareholders of the Bank reaching $140.0 million, compared to $78.7 million, representing 78% year on year growth. This strong performance can be attributed to the execution of a multi-year strategy resulting in record earnings, a healthy asset base, a strong balance sheet, improved margins, and enhanced customer relationships in 2023. 

The Group’s net income for the year 2023 reached $169.4 million compared to $96.1 million in 2022, marking a 76% increase over previous year, another remarkable achievement following the 82% increase recorded in 2022. This growth trajectory underscores strong performance driven by expansion in core business lines, favourable market conditions, and the positive effects of a rising interest rate environment, resulting in a 36 per cent increase in gross income to US$ 708.3 million. Net interest income at $498.5 million was 44% higher than the preceding year. Non-interest related income rose by 19% to $209.8 million, comprising fee -based offerings, FX Income, rebound of trading income and enhanced cross-selling initiatives. 

In line with the Bank’s vision of being a regional industry leader with international reach, the Bank’s strategy focuses on client-centricity and targeted investment in people and technology. Total expenses reached $397.5 million compared to $346.5 million the preceding year. The provision charge for the year of $112.0 million compared to $71.6 million charge last year demonstrated the Bank’s prudent risk management approach. 

Basic and diluted earnings per share attributable to the Shareholders of the Bank were US 6.59 cents compared to US 3.15 cents per share in 2022. Total comprehensive income attributable to the Shareholders of the Bank was $147.0 million compared to $76.2 million last year, representing a 93% increase.

Total shareholders’ equity excluding minority interest increased by 7% to $2,368.6 million compared to $2,221.6 million as of December 2022. The 2023 balance includes capital of $2,000 million, reserves of $237.3 million and retained earnings of $131.3 million that represents 7% of capital.

The bank grew its balance sheet by 44 per cent to reach US$ 47.1 billion by the end of 2023 as compared to US$ 32.6 billion as at 31 December 2022. This increase was attributed to a 57 per cent surge in customer deposits, notably influenced by a liability-driven GIB UK subsidiary, and an 18 per cent expansion in the loan portfolio. Investment securities of $6.7 billion principally comprised highly rated and liquid debt securities issued by regional governments and major financial institutions. Liquid assets of $24.8 billion constituted 53% of total assets while loans and advances of $13.6 billion accounted for 29% of total assets.

Customer deposits of $34.5 billion represented the majority of total deposits. GIB’s strong funding position demonstrates the ongoing confidence of the bank’s customers and counterparties, while all regulatory ratios including liquidity coverage ratio of 137.8%, net stable funding ratio of 143.0% and capital adequacy ratio of 18.9% are all well above regulatory mandates and support the bank’s growth plans. To further diversify funding sources, the Bank issued a SAR 1.5 billion (US$ 400 million) subordinated term financing through its GIB KSA subsidiary.

The financial statements for the year ended 31st December 2023 were audited by the external auditors, Ernst & Young (EY), and comply with International Financial Reporting Standards (IFRS). 

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.