GIC profit surges to $91m
Abu Dhabi, March 27, 2010
Gulf Investment Corporation (GIC), a leading regional financial institution based in Kuwait, said its net income surged to $91 million, representing a return of shareholders equity of 6.3 per cent.
Announcing the results on Saturday, chairman of the GIC Board Faisal Ali Al-Mansouri said the company's operating revenues increased multifold to $153 million, boosted by contributions from all core businesses.
The shareholders equity rose to $1.75 billion at the end of 2009, an increase of $1.1 billion compared to the previous year, Al Mansouri stated.
Approximately half of this increase, or $537 million, resulted from valuation gains and retained earnings during 2009, he added.
'With a capital adequacy ratio of 27 per cent, GIC continues to be one of the most strongly capitalized financial institutions in the region. As of December 31, 2009, GIC’s total balance sheet stood at $6.1 billion,' Al Mansouri said.
Al-Mansouri commended the solid recovery stating that GIC emerged strongly from the financial turmoil of 2008, reaffirming its resilience and ability to rapidly adapt to changing environments.
'The corporation has been extremely successful in facing the challenges, delivering excellent results during a difficult year. The initiatives to mitigate risks, deleverage the balance sheet, optimize resource allocation and strengthen systems that were implemented have borne fruit, and the corporation is now well positioned to take advantage of the emerging opportunities,' he stated.
The General Assembly of Gulf Investment Corporation reviewed and approved the audited financial statements for the year 2009 at a meeting held in Kuwait.
Hisham A. Al Razzuqi, GIC chief executive officer, said the robust performance, during a challenging phase, is testimony to GIC’s dynamism, proactive management and flexibility.
'GIC has significantly enhanced the quality of its balance sheet, reduced overall leverage and increased its capital base. We are now on a solid platform for continued profitability and growth.'
According to him, GIC continued to play a vital role in the principal investments business, despite several adverse conditions.
'As an example, the projects team successfully executed the Al Dur power project, achieving financial close in early 2009 – a period when liquidity was extremely tight. This reflects our standing in the region as a major promoter of private enterprise.'
'We will continue to focus on the GCC region, while maintaining a healthy balance of international exposures across a diverse range of asset classes,' he added.-TradeArabia News Service