Bahrain’s Gulf International Bank (GIB) has reported a 7 per cent fall in first-half profits after interest income fell.

Profit in the first-half fell to $58m, compared with $62.4m in the first-half of the previous year. Interest income fell 9 per cent to $67.5m.

Fee and commission income was 4 per cent higher at $27.6m, trading income was up 64 per cent to $16.1m and commission on letters of credit and guarantees was up 24 per cent.

The bank also said that costs rose 13 per cent to $62.5m as it focused on trying to develop its new strategy to become a universal bank around the GCC. GIB was one the main banks affected by the global financial crisis as a result of its investment in structured investment products in the US.