GIC sees profits despite subprime losses

by Richard Kilner

Story link: GIC sees profits despite subprime losses

The Gulf Investment Corporation has announced it is the latest financial institution to suffer a loss related to the subprime mortgage crisis.

The bank, which is based in Kuwait, has had to set aside $246m to cover potential losses.

Despite the large amount put to one side, it did still manage to turn a profit for 2007 of $253m.

The money set aside was to cover SIVs (structured investment vehicles) and structured credits, Hisham Al Razzuqi, the firm’s chief executive has revealed.

Al Razzuqi went on to say that the bank’s investments had yielded good results from both hedge funds and GCC equities.

He added that the bank achieved its profits in a difficult year where capital markets the world over and liquidity markets were tightening up.