In the fourth quarter of 2022, Gulf International Bank reported net income attributable to the shareholders of the bank of $28 million, compared to a loss of $1m in the same period last year.

All revenue categories exceeded planned growth, with net interest income of $110.1m up 67pc due to effective balance sheet management, increased spreads and the benefit of rising interest rates.

Fee and commission income reflected growth of 6pc, and foreign exchange income and other income showed similar growth trends as the bank continues to diversify revenues by investing in and building on capital-lite business lines.

Trading income in the last quarter rebounded after a volatile year.

During the fourth quarter of 2022, the basic and diluted earnings per share attributable to the shareholders of the bank amounted to US 1.12 cents compared to a loss of US 0.04 cents for the same period last year.

Total comprehensive income attributable to the shareholders of the bank during the quarter of $12.9m compared to $3.1m for the same period last year representing an increase of 316pc.

For the year ended December 31, 2022, GIB reported a net profit of $78.7m attributable to the shareholders of the bank, compared to $37.9m being 108pc up on last year.

GIB’s financial performance demonstrated the bank’s progress in successfully implementing initiatives and measures to increase shareholder returns.

Growth across all business lines contributed to a 32pc increase in revenues, and coupled with increased efficiencies and measured investment, the group’s net income for the year amounted to $96.1m compared to $52.7m in 2021.

Fee and commission income of $101.4m was 40pc up on the previous year, reflective of benefit realisation of investments in financial markets activities, risk distribution, retail and global transaction banking.

Also as a result of successful diversification initiatives, the group reported an 84pc increase in foreign exchange income and a 71pc increase in recoveries on written-off loans, the latter being the result of the successful establishment of a ‘Special Assets Unit’.

The quality of earnings improved despite a market-driven trading loss of $6.8m compared to a $30.7m gain in 2021.

This is a testament to the resilience and success of the bank’s business model.

The bank’s continued investment in technology, business and human capital led to the planned increase in total expenses to $346.5m compared to $296.7m last year.

The provision charge for the year of $71.6m compared to a $45.7m charge last year and reflects the bank’s proactive and prudent management of risk, resulting in a marked increase in the provision coverage ratio and reducing the NPL ratio to 1.6pc.

Basic and diluted earnings per share attributable to the shareholders of the bank of US 3.15 cents compared to US 1.52 cents per share in 2021.

Achievements

Total comprehensive income attributable to the shareholders of the bank of $76.2m compared to $64.8m last year representing an increase of 18pc.

GIB chairman Abdulla Al Zamil commented, “The achievements of 2022 reflect the dedication, commitment and tireless work of our team operating across the group’s various entities around the globe. Client centricity, focus and effective prioritisation, coupled with conducive market conditions, allowed the bank to realise the rewards from the investments made in people, technology and governance, and to deliver a strong set of results.”

GIB Group chief executive Abdulaziz AlHelaissi commented, “2022 was the year that the full extent of our future vision for GIB became a reality. After the disruptions of the recent past, including the Covid pandemic, 2022 saw the Bank deliver its best financial results for more than a decade. Assets are increasing in scale and quality, the balance sheet is prudent, diversified and solid, risk is well managed, and the culture of the bank is established, strong and empowering.”

Total shareholders’ equity excluding minority interest increased by 4pc to $2,221.6m (Dec 2021: $2,145.4m) and includes capital of $2,500m (Dec 2021: $2,500m), reserves of $450.6m (Dec 2021: $435.5m) and accumulated losses of $729m (Dec 2021: $790.1m) that represent 29pc of capital.

The bank continues to maintain a robust balance sheet, with consolidated total assets at the year-end of $32.6 billion, a 3pc increase compared to

$31.8bn last year.

Liquid assets represented 41pc of total assets, and investment securities of $5.8bn principally comprised highly rated and liquid debt securities issued by major financial institutions and regional governments.

Loans and advances of $11.5bn remained in line with prior year.

The bank maintained an effective and more diverse funding profile in 2022, with customer deposits of $21.9bn comprising the majority of total deposits and a marked increase in non-interest-bearing deposits.

GIB’s strong funding position demonstrates the ongoing confidence of the bank’s customers and counterparties, whilst all regulatory ratios (liquidity coverage ratio of 299.3pc, net stable funding ratio of 161.5pc and capital adequacy ratio of 17.3pc) are all indicative of planned future growth.

To further diversify funding sources, and implement on its sustainability strategy, the bank secured a $200m sustainability-linked repo facility, one of the first of its kind in the GCC.

GIB chief executive Jamal Alkishi commented, “2022 was a landmark year for GIB. After several years of diligently pursuing our strategy and investing in the bank’s future, 2022 was, I believe, the year when this hard work and focus began to come to fruition and marked the beginning of the next chapter of GIB’s story.”

The financial statements for the year ended December 31, 2022 were audited by the external auditors, Ernst & Young (EY), and comply with International Financial Reporting Standards (IFRS).

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