Gulf International Bank B.S.C. reports nine month profits of $184.5m

This compared to net income of $193.3m in the first nine months of 2006.

Net interest income at $232.2m was $43.2m or 23 per cent up on the prior year period. This was principally due to continued growth in the Group's GCC lending activity. Fee and commission income at $66.5m was $16.0m or 32 per cent up on the prior year. Fee and commission income represents the second largest income category and is an important and growing contributor to the Group's earnings. The year-on-year increases in the strategically important interest and fee income categories largely offset a decrease in trading income.

GIB's strategic focus on the GCC mitigated the adverse impact of the recent turmoil in the international credit markets. Total operating expenses were $13.0m up on the prior year largely reflecting the impact of the weaker US Dollar on foreign currency denominated expenses. Net provisions for credit losses were $6.4m for the nine months.

Consolidated total assets were $28.3bn at the quarter end, being $3.5bn up on the 2006 year end level. This was principally attributable to an increase in loans and advances, which increased by $4.2bn to $12.3bn. This reflects the continued robust economic expansion and growth momentum within the GCC. The high level of liquidity prevailing within the region contributed to a $2.2bn increase in deposits from customers while deposits from banks were $0.6bn up on the year end level. The Bank's funding profile has also been significantly enhanced by a $0.9bn increase in term financing during 2007. Term financing totalled $3.3bn at the quarter end.

The consolidated interim financial statements for the nine months to 30th September 2007 will be available shortly on GIB's website.