Net income after tax in the second quarter was
Total income at
Net interest income at
The year-on-year increase in net interest income principally reflected further increases in both loan volumes and loan margins as the bank successfully reorientates its lending activities from transactional-based long-term project and structured finance to relationship-based large and mid-cap corporates.
The resultant increase in net interest income was partially offset by lower interest received from impaired loans, which were exceptionally high in 2013, and higher costs associated with balance sheet management initiatives.
These initiatives are part of an ongoing programme to minimise the mismatch between the maturities of assets and liabilities.
In this context, in May this year, GIB issued a two billion Saudi
During the first half of 2014, the nurturing of relationships with large and mid-cap corporates since the adoption of the new business strategy resulted in a 10pc increase in average loan volumes as well as increased non-asset based customer-related activities.
Fee and commission income at
This further growth in fee and commission income reflects the success that has been achieved in the implementation of GIB's new strategic focus on non-asset based, relationship-orientated products and services, and on supporting customers' commercial and trade finance requirements.
Foreign exchange income at
Foreign exchange income entirely comprised customer-related foreign exchange revenue, and in particular revenue derived from structured products designed to assist customers in hedging their foreign exchange exposures in the current volatile markets.
Foreign exchange income in the prior year was exceptionally high due to an abnormally high level of customer transactions.
Trading income at
However, the prior year profit included an exceptional
Trading income principally comprised gains on investments in funds managed by the Bank's
Other income of
However, other income included an exceptional, one-off recovery relating to a previously impaired loan.
The remaining other income principally comprised dividends on equity investments.
Total expenses at
The year-on-year increase in expenses was attributable to the ongoing investment in the implementation of GIB's new GCC-focused universal banking strategy, and in particular the new retail bank, which is currently undergoing a trial phase for retail banking services to customers in
Consolidated total assets at the half year end were
The asset profile on
Cash and other liquid assets, and short-term placements totalled
Investment securities at
Loans and advances amounted to
There was a further improvement in the bank's funding profile in the first half of 2014 with a
Senior term finance was
The increase represented additional term borrowings raised to lengthen the maturity of the bank's liabilities. GIB's robust funding position demonstrates the confidence of the bank's customers and counterparties based on its strong ownership and financial strength.
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