Gulf International Bank B.S.C. reports first half profits of USD70.5 million

The performance at the operating level was strong; advances were recorded in both interest and non-interest earnings while operating expenses declined over the prior year period. Net interest earnings were $5.6 million or 5.8 per cent up on the prior year period with the increase largely attributable to higher securities volumes. Other Income at $59.1 million benefited from higher profits from securities activities and was $15.6 million or 35.9 per cent ahead of the result in the comparable prior year period. Operating expenses declined by 7.9 per cent to $51.0 million reflecting the ongoing benefits derived from the recent restructuring initiatives. However, bottom line net income after tax recorded a $2.6 million or 3.6 per cent decline over the prior half year due to higher provisions for credit losses.

Consolidated Total Assets at the half year end were $15,794.4 million. This represented a $562.4 million increase against the 2001 year end level. Higher securities volumes and lower placement volumes principally accounted for the net increase. Shareholders' Equity at $1,147.0 million represented 7.3 per cent of Total Assets.