GIB Reports Consistent Growth with $126.4 Million Net Profit Attributable to Shareholders

In the third quarter of 2024, the net profit attributable to shareholders was $37.9 million, reflecting an 8% decrease from $41.2 million in the same period last year. Net interest income reached $131.4 million, up 3% due to effective balance sheet management and higher net spreads. Trading income for the quarter surged to $13.6 million, a 268% increase driven by favourable market conditions. Provisions for the quarter amounted to $20.9 million, down from $25.0 million in Q3 2023, resulting in a consolidated net profit of $47.7 million for the Group.

Basic and diluted earnings per share for shareholders of the bank stood at $1.90 cents, compared to $2.06 cents per share in the same period last year. Total comprehensive income attributable to Shareholders of the Bank rose by 10% to $42.6 million from $38.7 million in the prior year.

For the period ending 30th September 2024, the Bank's consistent performance highlights progress in enhancing the quality of earnings by strengthening and diversifying its core revenue streams. This aligns with the Bank's strategic goal of improving shareholder returns. Net profit attributable to shareholders increased by 3% to $126.4 million, compared to $122.4 million in the same period last year. Net income for the nine-month period reached $154 million, a 5% increase from $146.4 million in the corresponding period of 2023.

Net interest income grew by 7% to $391.4 million, driven by higher net interest margins from core business activities, a dynamic balance sheet structure, and improved lending margins. Net fee and commission income increased by 21% to $93.1 million, reflecting the success of the Bank's diversification strategy.

 
Operating costs for the nine-month period increased by 16% to $320.4 million, driven by the Bank's investments in technology, talent development, and business growth initiatives aimed at building a stronger future.
The provision charge of $37.7 million for the period, down from $72.6 million in September 2023, underscores the Bank’s prudent risk management approach.

Basic and diluted earnings per share attributable to shareholders of the Bank were $6.32 cents compared to $6.12 cents per share in the previous period. Total comprehensive income attributable to shareholders was $127.1 million, a slight increase of 1% from $126.1 million in the prior year.

Total shareholders' equity, excluding minority interest, rose by 5% to $2.5 billion, up from $2.4 billion in December 2023. This includes reserves and retained earnings of $495.7 million, which represent 25% of capital.
As of 30th September 2024, total consolidated assets amounted to $48.1 billion, up 2% from $47.1 billion in December 2023. Cash and liquid assets, including short-term placements, reached $24.7 billion, representing 51% of total assets, compared to 53% in December 2023. Investment securities of $7.4 billion were mainly composed of highly rated and liquid debt securities issued by major financial institutions and regional government-related entities. Loans and advances increased by 3% to $14.0 billion.

For the nine-month period ending 30th September 2024, GIB continued to leverage its strong funding profile, with customer deposits reaching $33.9 billion. The Bank's solid funding position reflects the confidence of its customers and counterparties, driven by its strong ownership and financial strength. The liquidity coverage ratio of 147.2%, net stable funding ratio of 162.5%, and Basel III total capital adequacy ratio of 16.0% all exceed the regulatory requirements.

The financial statements for the nine months ended September 30th, 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 (UK) Ltd. Additionally, the Bank has branches in London, New York, Abu Dhabi and Oman in addition to a representative office in Dubai.

GIB is owned by the sovereign wealth funds/governments of the Gulf Cooperation Council countries (GCC), with Saudi Arabia’s Public Investment Fund (PIF) being the primary shareholder.