The Gulf Investment Corporation (GIC), a regional financial institution owned entirely and equally by the six Gulf states, said its net income for 2011 grew to $182 million from $151 million in 2010, representing a 20 per cent year-on-year increase.

Announcing the results on Saturday after its general assembly, GIC said the earnings from GIC core businesses contributed to the growth in net operating revenues, which reached $292 million, up 31 per cent compared to the preceding year.

As at 31st December 2011, total shareholders’ equity reached $2.4 billion, representing a year-on-year value addition of $273 million. This increase, which includes both realized and unrealized gains, reflects an economic return of 12.8 per cent on the previous year’s equity.

Commenting on the performance, board chairman Dr Zakaria Ahmed Hejres said,'GIC's good performance in a challenging business environment is a reflection of its resilience and strength. I am pleased to note the steady progress GIC made in financial strength and risk profile, continues to be in tandem with business expansion and revenue growth.'

'The corporation continued to play a major role in development of GCC-based projects via its principal investments as well as in the capital markets through its investment activities and product innovations. The board will continue to contribute in its strategic role towards achieving GIC’s corporate goals under the full support of our shareholders.'

'GIC’s total balance sheet, as at 31st December 2011, reached $5.88 billion.  With a leverage of just under 2.4 times, the balance sheet structure remains healthy and resilient,' Hejres added.

The high capital levels, conservative leverage and good asset quality are reflected in robust capital adequacy ratios.

Tier 1 capital ratio, as per Basel II guidelines, stood at 30.6 per cent as of the 2011 year end.  At that year, GIC had ample liquidity, with cash and equivalents of $596 million, on top of other liquid assets of nearly $3 billion.

Hisham A. Al Razzuqi, the chief executive officer, said it had been another good year for GIC and the consistent year on year enhancement of all key financial performance indicators was especially gratifying.'

'The growth in profitability was achieved alongside improvements in capital strength, liquidity and liability structure, leverage levels and risk profile.  This multi-dimensional strength resulted in positive rating actions from international rating agencies, including Moody’s, Fitch and Rating Agency Malaysia.'

'The strong foundation we have built, combined with the goodwill we have established, will enable us expand our business and regional franchise. We will continue, as a team, to strive towards achieving our corporate goals of contributing to the development of private enterprise in the region and creating value for our shareholders,' he added.-TradeArabia News Service