Flip through the latest issue of Gulf Weekly.
Gulf International Bank (GIB) reported consolidated net income after tax of $56.3 million for the six months ended June 30, 2010 compared to a loss of $22.5 million in the comparable prior year period. Net income after tax in the second quarter was $29.5 million representing a 10 per cent increase over the first quarter profit.
At the operating level, GIB reported consolidated operating income of $63.5 million. Operating income in the second quarter of $32.9 million was eight per cent up on the first quarter. Net interest income, which at $87.3 million for the six months represents the bank's principal income source, was 23 per cent down on the prior year period.
The year-on-year decrease was attributable to the deleveraging and derisking of the balance sheet and the prevailing historically low level of interest rates.
Net interest income in the second quarter, amounting to $44.1 million, was nevertheless slightly up on the first quarter. Fee-related income at $16.9 million was 14 per cent lower than in the prior year period due to a lower level of investment banking fees.
