In the fourth quarter of 2024, the net profit attributable to shareholders was USD 8.4 million, representing a 52% drop from USD 17.6 million in the same period last year. Fourth quarter’s results are primarily driven by a surge of USD 19.6 million in core income including fees and commission income, foreign exchange income and other income on one hand, offset by USD 30.1 million drop in market driven trading income. Provisions for the quarter amounted to USD 17.2 million, down from USD 39.4 million in Q4 2023, resulting in a consolidated net profit of USD 26.2 million for the Group compared to USD 23.0 million in the preceding period.
Basic and diluted earnings per share for shareholders of the bank stood at USD 0.42 cents, compared to USD 0.88 cents per share in the same period last year. Total comprehensive income attributable to Shareholders of the Bank dropped from USD 20.9 million in Q4 2023, to (USD 20.2) million due to the decision to transact a buy-in contract de-risking the pension scheme from longevity, investment and inflation risk while providing long term security for scheme members.
The Bank’s strong performance highlights its ongoing financial stability, driven by an expanded market presence and effective risk management. Additionally, the focus on enhancing and diversifying core revenue streams has improved the quality of earnings. This approach aligns with the Bank’s strategic objective of increasing returns for shareholders. For the year ended 31st December 2024, net profit attributable to shareholders reached USD 134.8 million, down by 4 per cent compared to USD 140.0 million in the same period last year affected by the drop in trading income. Nevertheless, net income as of 31st December 2024 was USD 180.2 million, a 6% increase from USD 169.4 million in the corresponding period of 2023.
Net interest income grew by 5% to USD 522.2 million, driven by higher net interest margins from core business activities, a dynamic balance sheet structure, and improved lending margins. Net fee and commission income increased by 19% to USD 121.8 million, reflecting a strategic milestone of successfully diversifying core revenue.
The increase in operating expenses by 13% to USD 450.0 million is primarily attributed to bank’s commitment to workforce development, technology upgrades, and initiatives aimed at enhancing business-related and operational efficiency.
The provision charge of USD 54.9 million for the year, down from USD 112.0 million compared to the preceding year, this underscores the Bank’s prudent risk management framework and policies.
Basic and diluted earnings per share attributable to shareholders of the Bank were $6.74 cents compared to USD 6.59 cents per share in the previous period. Total comprehensive income attributable to shareholders was USD 106.9 million, a decrease of 27% from USD 147.0 million in the prior year.
Total shareholders’ equity, excluding minority interest, rose by 5% to USD 2.5 billion, up from USD 2.4 billion in December 2023. This includes reserves and retained earnings of USD 475.5 million, which represent 24% of capital.
As of 31st December 2024, total consolidated assets amounted to USD 42.9 billion, down 9% from USD 47.1 billion in December 2023. This drop was attributed to a decline in transitory client deposits associated with the Group’s cash management and payment services in the UK, which are matched with central banks, other banks, and short-term securities. Loans and advances expanded by 13% to USD 15.4 billion supported by healthy growing volumes. Investment securities of USD 7.3 billion were mainly composed of highly rated and liquid debt securities issued by major financial institutions and regional government-related entities.
GIB maintains a robust funding profile, with customer deposits reaching USD 28.2 billion. The liquidity coverage ratio of 149.4%, net stable funding ratio of 142.8%, and Basel III total capital adequacy ratio of 15.6% all exceed the regulatory requirements.
During the last quarter, Moody’s upgraded GIB’s credit rating from A3 to A2 — the highest rating the Group has achieved to date. This reflects the quality of our earnings and overall financial position, including declining NPL and improved provisions coverage ratios.
The financial statements for the year ended 31st December 2024 were audited by the external auditors, Ernst & Young (EY), and comply with International Financial Reporting Standards (IFRS).
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 international markets through its subsidiaries: GIB Saudi Arabia, GIB (UK) Ltd. Additionally, the Bank has branches in London, New York, Abu Dhabi and Oman in addition to a representative office in Dubai.
GIB is owned by the sovereign wealth funds/governments of the Gulf Cooperation Council countries (GCC), with Saudi Arabia’s Public Investment Fund (PIF) being the primary shareholder.
