19 October 2003 - United Gulf Bank Profits Soar to $25.7 Million

United Gulf Bank, the investment banking arm and subsidiary of Kuwait Projects Company (Holding) KSC, Kuwait (KIPCO), announced net income of US$ 25.7 million for the nine months period ended 30 September 2003, up 173 percent from the US$ 9.4 million earned in the same period last year. The strong upwards momentum results from out-performance by core investments in the asset management and banking sectors as well as the strong rebound in regional and international capital markets.

During the quarter UGB raised a US$ 60 million 3-5 year bond issue from the Kuwait market. The fine pricing on the issue was the result of the significant increase in UGB’s earnings trend as well as the issue’s investment grade (BBB) rating.

Total Revenues for the nine months at US$ 66.1 million recorded an increase of 67 percent over US$ 39.6 million earned in the same period last year. Net income of US$ 25.7 million for the nine months maintained the positive growth from US$ 4.0 million in 2001 to US$ 9.6 million in 2002 to US$ 15.3 million in the first 6 months of 2003. Earnings per share jumped to 34 Bahraini fils (9 cents) over 13 Bahraini fils (3.4 cents) earned in the 9 months ended September 2002.

Consolidated Total Assets at 30 September 2003 stood at US$ 1.1 billion supported by a strong equity base of US$ 239.8 MM. Liquidity stood at 43%.

Commenting on this performance William Khouri, Chief Executive Officer stated: "We are pleased by these results generated from healthy contributions by all our business segments. Our asset allocation policies centered upon strategic investments in core subsidiaries and associates have clearly paid off and are now seeing the beneficial effects of the improving global economy on our investment portfolios. In addition, the recent award of the mobile telecom contract in Northern Iraq to a joint venture in which UGB has 9% equity stake, will broaden further our earnings base".

UGB’s main subsidiaries are Tunis International Bank, Tunisia; KIPCO Asset Management Company, Kuwait; UGB Securities Co., Bahrain; and Algeria Gulf Bank (under formation) Algeria. UGB also has equity interests of 44% in Jordan Kuwait Bank, Jordan; 34% in United Real Estate Company, Kuwait; and 49% in United Industries Company, Kuwait.

UGB’s activities consist of private equity and fund investments, quoted equities, asset management, corporate finance, real estate, treasury and selective commercial banking services.

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