Gulf Investment Corporation (GIC) has decided to pay a 1995 dividend of $52.5 million, up from $37.5 million, after a year of strong profit growth. The group released 1995 figures after its annual general meeting on 30 March, having earlier announced an 86 per cent rise in 1995 net profits to $116 million (MEED 2:2:96).
Shareholders' equity rose to $1,001 million from $938 million. 'This places the corporation among the leading financial institutions in the Gulf region,' a GIC statement said. Return on equity rose to 12 per cent from 6.7 per cent. Total deposits rose to $8,135 million from $7,655 million.
Return on paid up capital rose to 15.4 per cent from 8.3 per cent. The ratio of total capital to risk-adjusted assets was a conservative 17.1 per cent in 1995.
The UAE's Minister of State for Finance & Industry, Ahmed bin Humaid al-Tayer, becomes the new chairman of GIC and Bahrain's Finance & National Economy Minister, Ibrahim Abdul-Karim, the deputy chairman, in line with the group's policy of rotating the posts every two years. GIC is owned by the six GCC states and itself owns Gulf International Bank (see below).
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