Gulf International Bank announced that a net profit returned to shareholders worth $ 8.4 million in the fourth quarter of 2024, compared to $ 17.6 million in the same period in the previous year, a decrease of 52%.
The results of the last quarter of the year 2024 AD are mainly attributed to an increase of 19.6 million US dollars in the basic income, including income from fees and commissions as well as income from foreign currencies and other incomes, met on the other side a decrease in income from trading driven by market factors of $ 30.1 million.
The allocations calculated for the fourth quarter amounted to $ 17.2 million, and a decrease compared to 39.4 million US dollars from the same period last year, which led to a record of a net profit for the group worth 26.2 million US dollars compared to 23.0 million US dollars in the previous period.
The basic and light share profitability of the bank’s shareholders was 0.42 American cents, compared to 0.88 American cents per share for the same period last year. The total comprehensive income returning to shareholders decreased from $ 20.9 million in the last quarter of last year to (20.2) million US dollars.
This is due to the conclusion of a purchase contract to reduce the risks of the retirement program related to the extension of age, investment and inflation, while providing safety in the long term for subscribers to the program.
The strong performance of the bank highlights its solid financial position, which is supported by a wide presence in the market and a rational management of risks. In addition, the bank’s focus on strengthening and diversifying basic revenue sources improved its profit quality. This prolonged approach is in line with the bank’s strategic goal of improving shareholders ’returns.
As for the year ending on December 31, 2024 AD, the net profits of shareholders reached 134.8 million US dollars, compared to $ 140.0 million in the same period last year, which represents a 4% decrease as a result of low income from trading.
On the other hand, the group’s net income for this year amounted to $ 180.2 million, compared to 169.4 million US dollars last year, an increase of 6%.
The net income of benefits increased by 5% to $ 522.2 million, due to the high net interest margin on basic work, the efficiency of the public budget structure, and the improvement of lending margins. The net income of fees and commissions increased by 19% to 121.8 million US dollars, which reflects the success of the bank’s diversification strategy.
The operational costs increased by 13% to 450.0 million US dollars, as a result of the bank’s commitment to enhance the skills of its working power, updates implemented in the field of technology, and its initiatives aimed at developing business and enhancing operational efficiency.
The expected credit allocations for the year reached $ 54.9 million, a decrease of 112.0 million US dollars compared to the previous year, which reflects the bank’s wise risk management framework and policies.
The basic and mitigating profits of the shareholders reached 6.74 American cents compared to 6.59 American cents per share for the previous period. The total comprehensive income returning to shareholders was $ 106.9 million, a decrease of 27% from 147.0 million US dollars in the previous year.
The total shareholders ’rights, with the exception of the minority share, increased by 5% to 2.5 billion US dollars, from 2.4 billion US dollars in December 2023 AD. This includes the reserves and profits of $ 475.5 million, which represents 24% of the capital.
Until December 31, 2024 AD, the total unified assets amounted to 42.9 billion US dollars, a decrease of 9% from 47.1 billion US dollars registered in December 2023 AD. This is due to the decrease in temporary customer deposits related to the services and payment management services provided by the group through the financial institution in the United Kingdom, which are deposited with central banks, other banks and short -term securities.
The loans and predecessors increased by 13% to $ 15.4 billion with the support of good growth levels. The investment securities of 7.3 billion US dollars consist primarily from high -class debt papers and liquid debt papers issued by major financial institutions and regional entities associated with governments.
Gulf International Bank continued to build a strong financing base, as customer deposits amounted to $ 28.2 billion. The liquidity coverage rate was 149.4%, the level of stable financing is 142.8%, and the total capital adequacy rate according to the Basel Convention (3) 15.6%, all of which are much higher than the regulatory limits.
Moody’s raised the credit rating of the Gulf International Bank from “A3” to “A2”, which is the highest rating by the group to date. This reflects the quality of the bank’s profits and the strength of its general financial position, including reducing the percentage of troubled loans and the noticeable increase in the proportion of allocations.
The financial statements of the year ending on December 31, 2024 AD were audited by the external auditors Ernest and Yong (EY) according to international standards for the preparation of financial reports.
Gulf International Bank was established. 1975 AD in the Kingdom of Bahrain as a traditional bank that provides banking services to institutions and companies, with a license from the Central Bank of Bahrain. The bank’s ownership is due to the governments of the Gulf Cooperation Council countries, while the majority of its shares are owned by the Kingdom of Saudi Arabia through its sovereign fund (Public Investment Fund).
The Gulf International Bank is officially working in the markets of the Gulf Cooperation Council and the world, through its subsidiaries, which include: Gulf International Bank – Saudi Arabia and the International Gulf Bank (UK), in addition to its international branches in London, New York, Abu Dhabi and Oman, in addition to a representative office in Dubai.
