GIB reports a 7.6 per cent increase in third quarter profits to USD86.6 million

The increase in the profit for the nine months was attributable to substantially higher non-interest earnings and a lower level of provisions. Net income is reported after provisions for credit losses of $43.2 million (2002: $58.3 million).

Net interest income at $125.5 million was 17.1 per cent down on the prior year period with improved margin income from both the core banking activity and the securities portfolio being more than offset by reduced interest earnings on the bank's net free capital resulting from the lower interest rate environment. Other income at $93.0 million was, however, $24.2 million or 35.2 per cent up on the prior year reflecting strong advances in both trading income and investment banking and management fees. Trading income at $38.2 million for the nine months compared to a loss of $6.0 million in the prior year period. Investment banking and management fees at $14.0 million were 19.7 per cent up on the prior year reflecting the bank's strategic emphasis on merchant banking activities. A 9.1 per cent year-on-year increase in total expenses was principally due to the impact of the weaker US Dollar on foreign currency denominated expenses.

Consolidated total assets at the third quarter end were $16,253.1 million, being slightly up on the 2002 year end level. A $700.1 million decrease in placements was largely offset by increases in available-for-sale securities and loans of $144.0 million and $313.6 million respectively. The substitution of placements with high quality, margin-generating assets reflects the bank's focus on the effective management of assets from both a capital utilisation and risk-adjusted return perspective. The bank's funding profile was also significantly enhanced during the period by a $645.8 million increase in term financing. As a result, term financing at 30th September amounted to $1,500.8 million, thereby representing 10 per cent of total liabilities. The increase in term financing offset a similar decrease in bank deposits. Shareholders' equity at the end of the third quarter was $1,314.6 million and represented 8.1 per cent of total assets.