RIYADH: Bahrain-based Gulf International Bank has seen its nine-month profit jump 30 percent owing to an interest income boost.
GIB which is owned by the governments of the Gulf Cooperation Council countries, with Saudi Arabia’s Public Investment Fund being the main shareholder, saw its profits reach $51 million for the period ended Sept. 30, 2022, against $39 million in the same period a year earlier, according to a statement.
The increase in profit was helped by a 24 percent rise in net income to $65.2 million compared to $53 million for the same period last year.
The bank’s net interest income of $235.7 million was 31 percent higher than last year, on the back of balance sheet growth in addition to the stabilization of markets that led to higher yields.
Its net fee and commission income of $76.2 million was 56 percent higher than the previous year, reflecting the success of the diversification initiative away from pure lending activities.
For the third quarter of 2022, GIB's profit dropped 45 percent to $12 million, from $21 million in the same quarter last year.
The decrease in profit came despite a healthy increase in core revenue categories, mainly a result of unrealized mark-to-market losses on the bank’s trading portfolio of $7.8 million.
The decrease of 65 percent in other income to $5.7 million that was caused by the lower recoveries on previously written off assets also weighed on the results.
