Financial Results

Gulf Investment Corporation (GIC) posted robust results in 2010, with net profit reaching 151 million, representing an annual growth of 66%. The sustained improvement in profitability and financial strength over the past two years reaffirms the Corporation's success in overcoming challenging operating environments, and is a reflection of its inherent resilience.

(US$ million)                                                                                    2008              2009            2010

For the year

Gross Operating and Other Income                                                    10               153               223

Operating Expenses                                                                           48                  46                50

Net Profit / (Loss)                                                                           (996)                  91              151

At year end

Total Assets                                                                                    7,211            6,113           5,776

Interest Bearing Securities and Funds                                           3,331            2,604           2,143

Equities and Managed Funds                                                         1,103               458              556

Projects and Equity Participations                                                  1,116            1,428           1,825

Deposits                                                                                         2,896            1,360           1,429

Shareholders’ Equity                                                                         662            1,750           2,117

Selected Ratios (%)

Profitability

Return on Paid-up Capital                                                                     -                  5.3               7.2

Return on Adjusted Shareholders’ Equity                                            -                  6.3               7.7

Capital

BIS Ratios

-  Total                                                                                                 8.7              27.7             30.0

-  Tier 1                                                                                               8.7              27.7             30.0

Shareholders’ Equity as a % of Total Assets                                     9.2              28.6             36.7

Asset Quality

Marketable Securites as a % of Total Assets                                  48.2              43.2              39.1

GCC and OECD Country Risk as a % of Total Assets                    100.0            100.0            100.0

Liquidity

Liquid Assets Ratio                                                                          79.3               73.1            65.6

Productivity

Operating Income as Multiple of Operating Expenses                          -                 3.3               4.5