Gulf International Bank (GIB) reported profits of $90 million in 1995, 20 per cent higher than a year earlier and above the previous record earnings of $88 million reported in 1993. The bank says the performance was due to an all-round improvement in both interest and non-interest earnings.

The bank’s interest earnings have improved alongside a qualitative improvement in the bank’s loans portfolio. In 1994, non-performing loans accounted for 1.8 per cent of the total, and this percentage declined further in 1995.

Non-interest earnings benefited from the improvement in the international fixed income markets, as interest rates have come down in the Europe and the US. The bank’s trading in floating rate securities also performed well.

An increase in GIB’s investment securities portfolio was the main contributor to an 11 per cent rise in assets to $8,433 million in 1995. This included expanding the bank’s portfolio of floating rate investments, which is aimed at enhancing earnings, diversifying risk and developing a multi-product banking operation.

GIB is wholly owned by the Kuwait based Gulf Investment Corporation (see above). Full results for 1995 will be published after the annual general assembly.