Gulf International Bank (GIB) reported a significant increase in net profit attributable to the shareholders of the Bank reaching $9.8 million for the second quarter of 2021, compared to a loss of $37.9 million in the same period last year.
Established in 1975, GIB is a pan GCC universal bank owned by the governments of the Gulf Cooperation Council countries, with Saudi Arabia’s Public Investment Fund being the main shareholder.
Announcing its 2021 semi-annual financial results including the second quarter, the Bahrain headquartered bank said the increase is attributable to a 11 per cent growth in net interest income reaching $60 million, a 20 per cent increase in fees and commission income to $16.2 million, a reduction of 3 per cent in operating expenses and a notable increase in trading income to reach $10.3 million driven by favourable market conditions. The second quarter provision charge was $12.1 million, compared to a $49.6 million in the second quarter of 2020.
The basic and diluted earnings per share amounted to US0.39 cents during the second quarter of 2021, compared to a loss of US1.52 cents in the same period last year.
Total comprehensive income attributable to the Shareholders of the Bank during the quarter amounted to $14.3 million, compared to a loss of $47.5 million reported for the same period last year driven by strong performance and positive revaluation gains.
For the first half of 2021, GIB reported a net profit of $17.7 million attributable to the Shareholders of the Bank compared to a loss of $85.4 million in the prior year period.
This was achieved by a growth of 27 per cent in revenues and a 3 per cent decrease in expenses reflecting the continued success in implementing Bank’s strategic transformation plan.
The Group’s net income for the half year ended June 30, 2021 reached $28.5 million compared to a loss of $102.1million for same period last year.
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