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Gulf International Bank Q1 profits reach $71.8 million

DUBAI — Gulf International Bank B.S.C. (GIB) reported consolidated net income after tax of $71.8 million for the three months ended 31st March 2007. This compared to net income of $75.5 million in the first quarter of 2006.

A year-on-year increase in gross income resulting from continuing improvements across GIB's principal business activities was offset by an increase in operating expenses attributable to adverse exchange rate movements and higher performance-related remuneration.

Net interest income at $70.1 million was $14.3 million or 26 per cent up on the prior year period. This was principally due to continued growth in the Group's GCC lending activity and the benefit derived from a higher interest rate environment. Fee and commission income at $17.0 million was 8 per cent up on the prior year. Fee and commission income represents an important and growing contributor to the Group's earnings. The year-on-year increases in the strategically important interest and fee income categories offset decreases in trading income and profits on available-for-sale securities. Trading income and profits on available-for-sale securities were at exceptionally high levels in the first quarter of the prior year.