The Banking Executive Magazine - April 2025

Gulf International Bank Amid a challenging market environ- ment marked by heightened volatility and declining trading income due to trade tariffs, Gulf International Bank achieved net profit attributable to shareholders of $48.0 million for the first quarter of 2025. This reflects a 1% increase from $47.5 million in the same period last year. The growth was fuelled by strong revenue from foreign exchange and other income, along with stable net interest income. Additionally, the bank maintained operational efficiency with a con- trolled 6% rise in operating ex- penses, driven by targeted investments in strategic initiatives aimed at fostering future revenue growth and enhancing the Bank’s competitive edge. The consolidated net profit of GIB Group reached $60.0 million during the first quarter compared to a net profit of $58.3 million in the preced- ing period, a healthy growth of 3% Basic and diluted earnings per share attributable to the shareholders of the Bank is 2.40 cents compared to 2.38 cents per share in the prior year. Total comprehensive income attributable to the shareholders of the parent of $49.4 million compared to $45.2 million in the prior year, up by 9%. Total shareholders’ equity excluding minority interest increased to $2.52 billion compared to $2.48 billion in December 2024 representing an in- crease of 2%. Reserves of $224.3 million and retained earnings of $300.6 million represent 11% and 15% of capital, respectively. The consolidated balance sheet as of March 31, 2025, stood at $46.9 bil- lion, reflecting a 9% year-on-year in- crease from $42.9 billion on December 31, 2024. This growth was driven by a 15% rise in cus- tomer deposits, significantly influ- enced by temporary client deposits linked to the Group's cash manage- ment and payment services in the UK. These deposits are invested in short-term placements with central banks and other banks, leading to a rise in cash and other liquid assets and placements reaching $20.2 bil- lion, which accounts for 43% of total assets compared to 40% at the end of 2024. Investment securities to- talled $8.1billion, primarily consist- ing of highly rated and liquid debt securities issued by major financial institutions and regional govern- ment-related entities. Loans and ad- vances reached $15.7 billion, up 2% from the end of 2024, in line with the Bank’s strategy to originate, under- write, and distribute. The bank’s funding profile remained strong with customer deposits of $32.5 billion comprising the majority of the Bank’s funding base. The liq- uidity coverage ratio of 127.4%, net stable funding ratio of 139.2%, and Basel III total capital adequacy ratio of 15.4% all exceed the regulatory requirements. The financial statements for the first quarter of 2025 were reviewed by the external auditors KPMG Fakhro and comply with International Ac- counting Standard (IAS) 34 – Interim Financial Reporting. Gulf International Bank B.S.C. is a pan GCC universal bank established in 1975 and regulated by the Central Bank of Bahrain. GIB’s services are delivered across the GCC and inter- national markets through its sub- sidiaries: GIB Saudi Arabia, GIB Capital, GIB (UK) Ltd. Additionally, the bank has branches in London (UK), New York (USA), Abu Dhabi (UAE) and Muscat (Oman), in addi- tion to a representative office in Dubai (UAE). ISSUE 196 APRIL 2025 the BANKING EXECUTIVE 31 Gulf International Bank REPORTS 2025 FIRST QUARTER RESULTS