Gulf Investment Corp profits grow by 66 percent
Kuwait-based Gulf Investment Corporation (GIC) has reported 66 percent increase in profits for the year 2010.
March 26, 2011 4:29 by Reuters
Kuwait-based Gulf Investment Corporation (GIC) has reported 66 percent increase in profits for the year 2010.Net income grew to $151 million compared to $91 million in 2009.
“In 2010, GIC achieved well on multiple dimensions that include increased profitability, enhanced capital base, improved liquidity and leverage levels and better risk profile. In tandem with these improved financial performance indicators, GIC successfully executed important principal investment projects in the GCC region, and completed several initiatives that contributed to optimising asset allocation, strengthening risk controls and enhancing overall corporate governance. These achievements distinguish GIC as a winner in the region. GIC’s solid financial strength and established regional franchise provide a platform for future growth. I see a bright future for GIC,” said Chairman of the Board H.E. Dr. Zakaria Ahmed Hejres.
Net operating revenues grew by an annual 46 percent to $223 million, driven by revenues from GIC’s core business activities. The corporation’s capital base was further strengthened through revaluation gains and realized profits. As of 31 December 2010, total shareholders’ equity stood at $ 2.1 billion, a year-on-year increase of $367 million, representing a 21 percent growth.
The enhanced capital base, combined with improved overall asset quality, augmented capital adequacy ratios resulting in a Tier 1 capital ratio of 30 percent. Noteworthy, the balance sheet continues to be conservatively leveraged at about 2.7 times, reflecting a lower risk profile. At the year end 2010, GIC maintained ample liquidity, with cash and equivalents of $654 million, on top of other liquid assets of nearly $3 billion.
Established in 1983, GIC is a regional financial institution owned by equally by the six GCC states. It strives to provide a comprehensive range of financial services that support the development of private enterprise and economic growth in the region. GIC managed to achieve a number of major projects throughout GCC countries with diversified activities covering different sectors via financial, petrochemical, steel, power, communications amongst others.