Kuwait-based Gulf Investment Corporation (GIC) said its full year net profit for 2010 surged 66 per cent to $151 million when compared to $91 million the previous year.

A leading financial institution, GIC was established in 1983 by the GCC and is owned by the six member states of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and UAE.

The company said its net operating revenues grew by an annual 46 per cent to touch $223 million, driven by revenues from its core business activities. The corporation’s capital base was further strengthened through revaluation gains and realized profits. 

Commenting on the performance, GIC board chairman Dr. Zakaria Ahmed Hejres said, “In 2010, GIC achieved well on multiple dimensions that include increased profitability, enhanced capital base, improved liquidity and leverage levels and better risk profile.'

'As of December 31, 2010, the GIC's total shareholders’ equity stood at $2.11 billion, a year-on-year increase of $367 million, representing a 21 per cent growth,' Hejres pointed out.

The enhanced capital base, combined with improved overall asset quality, augmented capital adequacy ratios resulting in a Tier 1 capital ratio of 30 per cent, he added.

According to him, 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.

The GIC general assembly meeting reviewed and approved the audited financial statement in the meeting that took place last Thursday in Kuwait.

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 optimizing 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 Hejres.

Hisham A. Al Razzuqi, GIC chief executive officer, said, 'The year under review was an excellent one for GIC in several aspects. The sustained improvement in profitability and financial strength over the past two years reaffirm the corporation’s success in overcoming challenging operating environments and reflect GIC’s inherent resilience.'

According to him, all business lines performed well during the year, exceeding revenue targets, while conforming to desired risk profiles.

'Whilst steadily improving all key financial performance indicators, we are also able to expand our business and regional franchise.  Going forward, I am confident that the strong foundations which we have anchored will enable us achieve our objectives and goals to the benefit of our shareholders and to the region we serve,” he added

A key player in the region, GIC has a number of major projects in GCC countries with diversified activities covering different sectors via financial, petrochemical, steel, power, communications amongst others.-TradeArabia News Service