GIB Net Profit At $58m In H1

Gulf International Bank B.S.C. (GIB) reported consolidated net income after tax of $58.0 million for the six months ended June 30,2012, compared to $62.4 million in the prior year period. Net income after tax in the second quarter was $26.2 million.

Year-on-year increases were recorded in all income categories with the exception of net interest income. Net interest income at $67.5 million for the six months was 9 percent down on the prior year period. However, prior year interest earnings benefited from a $7.5 million recovery of past due interest on a non-performing loan. Excluding this one off exceptional income item, net interest income was marginally up on the prior year. Fee and commission income at $27.6 million was $1.1 million or 4 percent higher than in the prior year period. Trading income at $16.1 million for the six months was $6.3 million or 64 percent up on the prior year period.

Total expenses at $62.5 million for the six months were 13 percent up on the prior year period. The year-on-year increase in expenses reflected ongoing investment in the implementation of GIB’s new GCC-focused universal banking strategy. A net provision release of $1.6 million was recorded in the first half of the year. The absence of any provisioning requirement reflected prudent and conservative provisioning actions taken in prior years.

Saudigazette