GIB proposes unchanged dividend

12 April 1996

Gulf International Bank (GIB) is proposing a 1995 dividend of $45 million, unchanged from the year before, from net profits that rose 20 per cent in 1995 to $90 million.

GIB, which is owned by Gulf Investment Corporation, held its annual general meeting at the end of March. It has already released highlights of its 1995 results (MEED 2:2:96). Its chairman, Bahraini Finance & National Economy Minister Ibrahim Abdul-Karim, said the results reflected the GIB's five-year policy of strengthening senior management, boosting value-added banking services, enhancing customer focus and 'the deliberate diversification of both income streams and balance sheet structure.' Total assets were $8,433 million in 1995, up from $7,574 million the year before. The main shift in asset allocation was the $845 million rise in the value of securities held by the bank to $2,521 million. Loans and advances fell $158 million to £3,258 million and loans formed 39 per cent of GIB's assets at the end of 1995, compared to 45 per cent the year before, and the proportion of securities to assets rose by roughly the same amount.

Shareholders' equity rose to $603 million from $558 million. The increase reflected the $45 million added to reserves in 1995. Return on equity rose to 14.9 per cent from 13.4 per cent and return on assets to 1.1 per cent from 1.0 per cent.

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