30 May 2000
 
Gulf International Bank's (GIB) 1999 consolidated accounts were ratified at the 23rd meeting of the General Assembly convened today in Manama - Bahrain.
 
GIB recorded a consolidated operating profit before exceptional charges of $93.2 million representing a 12.2 per cent increase over the comparable prior year result for GIB only. The 1999 consolidated profit incorporated the results of Saudi International Bank (SIB) for the nine months since acquisition in April 1999. Consolidated Net Income after deduction of restructuring costs in connection with the integration with SIB and a one-off exceptional charge arising on the harmonisation of an accounting policy following the SIB acquisition was $67.6 million compared to a prior year profit of $82.1 million for GIB alone. Total Assets rose to $15.7 billion at the 1999 year end compared to $10.2 billion at the end of 1998. The substantial year-on-year advance was principally attributable to the acquisition of SIB. Shareholders' Equity increased to $1.1 billion to represent 7.3 per cent of Total Assets. The strong capital base contributed to consolidated BIS and BMA risk asset ratios of 12.2 per cent and 13.1 per cent respectively. The General Assembly also approved the payment of a $50.0 million dividend from 1999 profits compared with $45.0 million in 1998.
 
H.E. Abdulla Hassan Saif, Chairman of the Board and Minister of Finance and National Economy of the State of Bahrain, commented: "1999 was a year of consolidation for the bank. Following the acquisition of SIB, a comprehensive integration plan has been developed, involving the realignment of certain business activities and the streamlining of support functions, to create a cohesive, integrated organisation and to facilitate the effective delivery of the broad range of available services to the bank's customers. We now look forward with enthusiasm to building on the recognised core competencies and strengths of both institutions".
 
Dr. Khaled Al-Fayez, Group Chief Executive, said: "GIB has entered 2000 with a clearly defined strategy, focusing on the provision of effective and competitive services to our customers. This will provide a platform for growth in the new millennium and contribute to the enhancement and further diversification of the bank's revenues. We are confident that the combined resources of GIB and SIB will enhance the bank's position as a leader in the GCC region".
 
Dr. Abdullah El-Kuwaiz, GIB's General Manager, explained: "The year-on-year increase in the underlying operating profit before exceptional charges reflected a broad-based improvement in both interest and non-interest earnings. A higher volume of margin generating assets contributed to a $29.3 million or 34.3 per cent year-on-year increase in Net Interest Revenue after Provisions to $114.6 million. In addition, non-interest revenues rose by $28.2 million or 57.3 per cent to $77.4 million. This reflected a significant increase in trading revenues and also higher fee-based income derived from SIB's asset management and corporate finance activities. Consolidated Net Income after Tax was, however, net of one-off restructuring costs of $11.7 million in connection with the reorganisation and streamlining of business activities associated with the integration with SIB and also a non-recurring pre-tax charge of $13.9 million arising on the harmonisation of an accounting policy in SIB following the acquisition".
 
GIB is a wholesale commercial and investment bank based in Bahrain. 
 
-Ends-
 
For further information please contact
Mrs. Myra Smits,
AVP,
Public Relations Division at GIB,
Bahrain (telephone: (+973) 522475).

© Press Release 2003