“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 optimizing asset allocation, strengthening risk controls and enhancing overall corporate governance,” said Dr. Zakaria Ahmed Hejres the Chairman of the GIC board.
“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,” he added.
The financials for 2010 were also ratified by the annual general assembly attended by the shareholders of the company.
Net operating revenues grew by an annual 46% 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 31st December 2010, total shareholders’ equity stood at $2.1billion, a year-on-year increase of $367 million, representing a 21% growth. The enhanced capital base, combined with improved overall asset quality, augmented capital adequacy ratios resulting in a Tier 1 capital ratio of 30%. 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 $3billion.
“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,” said Hisham A. Al Razzuqi, CEO GIC.
“It is gratifying to note that all business lines performed well during 2010, 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.
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.