GULF INTERNATIONAL BANK RECORDS STRONG FIRST QUARTER RESULTS

Gulf International Bank B.S.C. (GIB) recorded a net profit of $47.5 million attributable to the bank's shareholders in the first quarter of 2024, compared to $47.8 million in the corresponding period last year, change of 0.6%. The GIB Group achieved a consolidated net profit of $58.3 million during the same period, a 3% increase from the preceding period's $56.6 million. 

Continuing the strong performance of 2023, GIB is capitalizing on its momentum in the first quarter of 2024, demonstrating its dedication to enhancing shareholder returns and achieving strategic objectives. Total revenues for the quarter ending on March 31, 2024, reached $184.7 million, up by $12.5 million or 7.3% compared to the previous year, driven by significant growth in net fee and commission income as well as net interest income.

 
Net fee and commission income surged by 66% to $39.9 million compared to $24 million in the prior period, attributed to increased activity in loan underwriting and distribution, trade finance, and retail banking.  

Net interest income rose by 7% to $128.7 million, primarily due to balance sheet expansion, a healthy asset profile, improved balance sheet spreads, and the continued favorable interest rate environment. Other income for the quarter was $5.6 million, a 12% increase from the previous year, driven by asset recoveries. 

The Bank remained focused on executing its multi-year strategy, resulting in total expenses of $102.4 million for the quarter, up by 11% compared to the prior year, reflecting investments in technology and business development. 

Basic and diluted earnings per share attributable to the bank's shareholders were 2.38 cents compared to 2.39 cents per share in the prior year, with total comprehensive income attributable to the shareholders of the bank at $45.2 million compared to $48.7 million in the prior year, reduction of 7%.  

Total shareholders' equity excluding minority interest increased to $2.41 billion compared to $2.37 billion in December 2023, representing a 2% increase. Reserves of $235 million and retained earnings of $178.8 million represent 12% and 9% of capital, respectively. 

The consolidated balance sheet as of March 31, 2024, was $53.8 billion, up 14% from December 2023 levels of $47.1billion,  attributed to a 19% increase in customer deposits, notably influenced by a liability-driven GIB UK subsidiary. Cash, other liquid assets, and short-term placements totalling $31.3 billion represented 58% of total assets, compared to 53% as of December 2023. Investment securities primarily consisted of highly rated and liquid debt securities issued by major financial institutions and regional government-related entities, amounting to $7.1 billion at the close of the first quarter. Loans and advances totalled $13.3 billion compared to $13.6 billion at the end of 2023, aligning with the Bank's emphasis on loan origination, underwriting, and distribution. 
 
  
GIB's funding position remained strong, with customer deposits comprising the majority of its deposit base. The bank’s funding profile remained strong with customer deposits of $41.1 billion comprising the majority of the Bank’s deposit base. The liquidity coverage ratio, net stable funding ratio, and Basel 3 total capital adequacy ratio stood at 125.2%, 148.1%, and 18.9%, respectively, all well above regulatory limits. 

In Q1 2024, the Group launched the Wholesale Banking Branch in Muscat (Oman), a significant milestone in its GCC expansion strategy and a testament to its commitment to the Sultanate of Oman as a core target market. The new branch offers a comprehensive range of Wholesale Banking solutions, including credit facilities, global transaction banking, and treasury services. 

The financial statements for the first quarter of 2024 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 Capital, GIB (UK) Ltd. Additionally, the bank has branches in London (UK), New York (USA), Abu Dhabi (UAE) and Muscat (Oman), in addition to a representative office in Dubai (UAE). 

GIB is owned by the governments of the Gulf Cooperation Council countries, with Saudi Arabia’s Public Investment Fund being the primary shareholder.