GIB loses $757m from subprime exposure

by Richard Kilner

Story link: GIB loses $757m from subprime exposure

Yesterday the Gulf International Bank reported a loss of US$757.3m during last year, mostly due to the US subprime mortgage crisis.

The figures contrast sharply with the Bahrain-based firm’s 2006 performance, which saw it achieve profits of US$255.5m.

An extra billion dollars was injected into the bank’s share capital by its shareholders, the six member states of the Gulf Co-operation Council.

The Gulf International Bank’s total share capital now stands at US$2.5bn.

Sheikh Ebrahim al-Khalifa, the chairman, described the bank as standing strong and proud, adding that the extra capital pumped into the firm outweighed the losses incurred.