April 7, 2014: Gulf Investment Corporation (GIC) announced today that its net profit for the year 2013 grew to $163 million, representing a year-on-year increase of 25%. The General Assembly reviewed and approved the financial statements during their meeting which was held in GIC headquarters in Kuwait on April 6, 2014.
Net operating revenues before provisions grew by 58% to reach $226 million, supported by revenues from the Global Markets group and the Principal Investments group. Total shareholders’ equity reached $2.6 Billion, an increase of $273 million or 11% compared to the previous year. GIC’s enhanced capital base, combined with improved overall asset quality, augmented capital adequacy ratios resulting in a Tier 1 capital ratio of 36%. At the 2013 year end, the debt to equity multiple stood at a conservative by 1.2 times, reflecting a lower risk profile, and strong financial position. GIC also maintained high levels of liquidity, with the ratio of liquid assets to short term liabilities growing to 191% from the 175% last year.
Commenting on the strong performance, H.E. Mr. Khaled Bin Saleh Al-Khattaf, Chairman of the Board, said that “2013 was a good year for GIC on multiple fronts. In terms of financial indicators, growth in profitability and capital base was robust. Moreover, the corporation also enhanced its liquidity & liability structure, cash flow generation and overall risk profile. In tandem with improved financial performance, GIC successfully completed several initiatives that contributed to optimizing asset allocation, strengthening risk controls and enhancing overall corporate governance. The upgrade by Fitch ratings of GIC’s viability ratings during 2013 is testimony to these achievements.”
Also commenting on GIC’s good performance, Mr. Ibrahim Ali Al-Qadhi, Chief Executive Officer of GIC said: “The strong performance resulted primarily from our efforts to diversify revenue sources and risk drivers. We are pleased that the core businesses performed well during the year exceeding profit targets, whilst maintaining strong financial condition. It is gratifying to note that GIC was also able to expand its investments in the GCC region, with such assets constituting 70% of total.
Established in 1983, GIC is a regional financial institution owned entirely and equally by the six GCC states of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE. GIC has a paid up capital of $2.1 Billion and is headquartered in Kuwait.
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