16 Mar 2005 - United Gulf Bank Holds its 25th General Assembly Meeting

United Gulf Bank (UGB) held its Annual General Meeting at its offices in UGB Tower, Diplomatic Area, Bahrain on Wednesday, March 16, 2005 with more than 80 per cent of shareholders represented.

Shareholders commended the Bank on its performance as UGB entered its Silver Jubilee year with a record net profit of US$ 36.2 million earned in 2003, and closed the year with another record net profit of US$ 43.3 million in 2004, up 19.6 per cent. The results put UGB’s return on average equity at 16 per cent and return on average assets at 3.4 per cent, placing it in the league of top performing banks in the region.

Shareholders also remarked on the substantial hidden value on the books. The market value of investments in four listed subsidiaries and associates, namely: Jordan Kuwait Bank; KIPCO Asset Management Company (KAMCO); United Real Estate Company; and United Industries Company was US$ 266 million in excess of UGB’s carrying values of these investments, as of December 31, 2004, compared to US$ 164 million in 2003 (up US$ 102 million).

UGB managing director Masaud Hayat highlighted the significant events which took place during 2004 . These were:

• UGB’s registered historic level of profitability.
• Capital Intelligence upgrading UGB’s foreign currency long-term rating to BBB. The Bank’s short-term ratings and outlook remain unchanged as A3 and Stable respectively.
• A medium-term Islamic financing of US$ 65 million successfully raised as part of the Bank’s strategy to continue diversification of its funding sources and to extend the maturity profile of its liabilities.
• UGB subsidiary Algeria Gulf Bank formally opening its doors for business.
• The Bank signing an MOU with Bank of Baghdad (BoB) to take a 25 per cent stake in the capital increase of the bank, raising BoB’s capital to nearly US$ 36 million. BoB, established in 1992, is the second largest private bank in Baghdad with 19 operating branches and two branches under construction. It has been profitable for the past five years and is a listed Company. UGB will also enter into a five-year management agreement with BoB. Completion of the MOU arrangements are subject to concerned regulatory approvals.
• The Bank receiving initial approval from the Central Bank of Syria for forming a new US$ 30 million capitalised commercial bank in Syria. Subject to final regulatory and shareholders’ approval, UGB will own a 24 per cent stake and manage the bank. Other Kuwaiti investors will own 25 per cent, while 51 per cent will be offered to Syrian investors.

In view of the outstanding profits generated by the Bank during 2004, the Annual General Meeting approved the payment of 15 per cent in cash dividend (3.75 US cents per share) compared to a 14 per cent cash dividend in 2003.

UGB, the investment banking subsidiary of Kuwait Projects Company (KIPCO), manages a diversified portfolio of investments in wealth and asset management, commercial banking, real estate, telecommunications, private equity and quoted securities. Assets under management exceed US$ 4.3 billion. UGB’s core investments in subsidiaries and associates include: Algeria Gulf Bank; Gulf Egypt for Hotels and Tourism Company; Jordan Kuwait Bank; KIPCO Asset Management (KAMCO); Tunis International Bank, United Gulf Bank Securities Company; United Cables Company; United Industries Company; United Real Estate Company and United Medical Services Company. UGB and its subsidiary KAMCO have a proven track record of successful investment banking activities including corporate finance advisory, new issue placement and underwriting, mergers and acquisitions, bond issuance and investment product structuring and placement. 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 & technology, with further interests in real estate and industry. The largest private sector company in Kuwait, KIPCO employs more than 10,000 people internationally and its shares are among the most actively traded on the Kuwait Stock Exchange.

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