Gulf International Bank (GIB), backed by Saudi Arabia’s Public Investment Fund, has reported a staggering 255 percent increase in profits for the third quarter of 2023. Headquartered in Manama and owned by the Gulf Cooperation Council countries, the bank disclosed a net profit of $41.2 million by the end of September, marking a substantial rise from the $11.6 million reported during the same period last year. This remarkable surge in profitability is attributed to a favorable interest rate environment, an optimized balance sheet structure, and the strategic diversification of core revenue streams.
The bank’s third-quarter success was primarily driven by a net interest income of $129.2 million, while trading income and other income contributed $2.3 million and $8.5 million, respectively. With comprehensive income for the period soaring by 195 percent to reach $38.7 million, basic and diluted earnings per share increased from $0.46 to $2.06. Over the nine-month period ending on Sept. 30, GIB’s net profit skyrocketed by 141 percent to $122.4 million, with consolidated total assets reaching $46.1 billion, reflecting a substantial 41 percent increase from December 2022. GIB remains cautiously positioned in risk management, bolstering provisions to $72.6 million against potential credit defaults. The bank also maintains compliance with Basel 3 standards, boasting a capital adequacy ratio of 16.3 percent.