13 July 2004 - UGB Profits up 50 Per Cent in 2004 First Half

United Gulf Bank B.S.C. – Bahrain (UGB), the investment banking subsidiary of Kuwait Projects Company (KIPCO), has announced US$ 23.0 million in profit for the first half of 2004, or 3.01 cents per share. This represents an almost 50 per cent increase on net income over the US$ 15.4 million earned during the same period last year, and follows UGB’s best-ever full year net profit of US$ 36.2 million in 2003, and a strong first quarter. Second quarter 2004 net income of US$ 11.6 million also witnessed 25 per cent growth over the US$ 9.3 million earned during the same quarter of last year.

UGB chief executive officer William Khouri commented: “The second quarter of this year saw continued growth in the earnings stream from our core businesses in asset management , in particular the trading portfolios managed by KIPCO Asset Management Company (KAMCO), in banking and in real estate. These strategic investments in our associates and subsidiaries constitute a recurring source of significant revenue for the Bank.

"During the quarter we were delighted to launch our Silver Jubilee year with a reception attended by shareholders, stakeholders and distinguished guests. We are very happy indeed to report that UGB is firmly on target and over half-way to delivering another year of record earnings," he said.

UGB’s total consolidated revenue of US$ 47.4 million in the first half of 2004 increased 15 per cent over the US$ 41.2 million recorded in the same period last year. Total consolidated assets at June 30, 2004 were US$ 1.2 billion supported by total consolidated shareholders’ equity of US$ 255 million

UGB manages a diversified portfolio of investments in wealth and asset management, commercial banking, real estate, telecommunications, private equity and quoted securities.

Core investments in subsidiaries and associates include: KIPCO Asset Management Co. (KAMCO), Kuwait; United Real Estate Company, Kuwait; Jordan Kuwait Bank, Jordan; Tunis International Bank, Tunisia; Algeria Gulf Bank, Algeria; UGB Securities Co., Bahrain; United Industries Company, Kuwait; and Gulf Egypt for Hotels and Tourism Company, Egypt. UGB and its subsidiary KAMCO have a proven track record of successful investment banking transactions including corporate finance advisory, new issue placement and underwriting, mergers and acquisitions, bond issuance and investment product structuring and placement. Assets under management exceed US$ 4.0 billion.

KIPCO, with assets of more than US$ 10 billion under management or control, is one of the leading diversified holding companies in the Middle East and North Africa and a major regional force in financial services and media & telecommunications, with further interests in real estate and industry. KIPCO’s net profit in 2003 soared by 182 per cent to US$ 61.8 million, reflecting the effectiveness of its long-term strategies to build sustainable profits and grow the value of the Group.

For further information please contact United Gulf Bank on telephone +973 17533233 or email info@ugbbah.com.