RIYADH: Gulf International Bank, with Saudi Arabia’s Public Investment Fund as its main shareholder, witnessed a 255 percent increase in profits during the third quarter of 2023. The Manama-headquartered bank, owned by the Gulf Cooperation Council countries, revealed a net profit of $41.2 million as of the end of September, representing a surge from the $11.6 million reported in the same period last year, according to an official statement. It attributed this upswing in profitability to a favorable interest rate environment and an optimized balance sheet structure. The bank’s strategic focus on enhancing and diversifying its core revenue streams has also played a pivotal role in this success. The primary driver of the bank’s profits in the third quarter was net interest income, totaling $129.2 million. Additionally, trading income and other income contributed $2.3 million and $8.5 million, respectively. Comprehensive income for the period, comprising net income and additional items, surged by 195 percent, reaching a total of $38.7 million. Basic and diluted earnings per share increased from $0.46 to $2.06. In the nine-month period ending on Sept. 30, the bank’s net profit soared by 141 percent, reaching $122.4 million, as indicated in the statement. The group’s net income for the same period witnessed a 125 percent increase, totaling $146.4 million. Additionally, foreign exchange income amounted to $28.2 million, and trading income rebounded from a negative $11.7 million to $27.7 million. This positive shift was linked to the market value of equity funds managed by the bank’s subsidiaries in Saudi Arabia and London. As of Sept. 30, GIB reported consolidated total assets of $46.1 billion, reflecting a 41 percent increase from December 2022. The bank said its strong liquidity position, with cash and other liquid assets at $24.7 billion, remained stable compared to the end of 2022. Investment securities of $6.4 billion mainly consisted of highly rated and liquid debt securities. Loans and advances grew by 9 percent to reach $12.6 billion during this period. GIB said it adopts a cautious approach to risk management, bolstering provisions during this period against potential credit defaults, from $22.2 million to $72.6 million. The bank is also in compliance with Basel 3 standards, indicating it holds more than ample capital to offset its risk-weighted assets, standing at a 16.3 percent of the capital adequacy ratio.