20 Jul 2005 - UGB Profits Soar to US$ 32.5 Million in First Half of 2005

United Gulf Bank of Bahrain (UGB), the investment banking subsidiary of Kuwait Projects Company Holding (KIPCO), has announced net profit of US$ 32.5 million for the first half of 2005, or 4.24 US cents per share. This represents a 41 per cent rise compared to US$ 23 million net profit earned during the same period last year, and follows UGB’s best-ever full year net profit of US$ 43.3 million in 2004.

UGB chief executive officer William Khouri said: “This strong first half performance continues the momentum of our past two record-earning years - US$ 43.3 million in 2004, and US$ 36.2 million in 2003 - putting UGB firmly on target to deliver record net profit for the third year in a row.”

He said projected net profit for the full year 2005 was US$ 50 million, as forecast at the “Shafafiyah” (Transparency) KIPCO Group Investors’ Forum in Kuwait last month.

“Historic level second quarter performance was supported by strong trading activities, as well as continued strong performance in our core businesses and in particular the wealth management services provided by our subsidiary KIPCO Asset Management Company (KAMCO). These core investments in our associates and subsidiaries constitute a recurring source of significant revenue and hidden value for the Bank,” he said.

UGB’s total consolidated revenue of US$ 82 million in the first half of 2005 increased 73 per cent over the US$ 47.5 million recorded in the same period last year. Total consolidated assets at June 30, 2005 were US$ 1.4 billion, supported by total consolidated shareholders’ equity of US$ 307.4 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: Algeria Gulf Bank, Algeria; Gulf Egypt for Hotels and Tourism Company, Egypt; Jordan Kuwait Bank, Jordan; KAMCO, Kuwait; Tunis International Bank, Tunisia; UGB Securities Co., Bahrain; United Cable Company, Kuwait; United Industries Company, Kuwait; and United Real Estate Company, Kuwait. UGB has received regulatory approvals to acquire a 25 per cent stake and take over management of Bank of Baghdad, a commercial bank already in profitable operations in Iraq.

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$ 4.2 billion.

KIPCO is Kuwait’s largest private sector investment company with more than US$ 15 billion under management or control and a portfolio of some 55 companies with major activities in financial services and media & telecommunications, as well as real estate, industry management & advisory, medical services and aviation throughout the Middle East and North Africa, and substantial ownership interests in the U.S and Europe. KIPCO employs more than 10,000 people internationally and its shares are among the most actively traded on the Kuwait Stock Exchange. UGB forms part of KIPCO’s Financial Services Group, which operates banks and investment companies in Algeria, Tunisia, Jordan, Palestine, Cyprus, Bahrain, Kuwait and the U.S.,. with operations planned in Iraq and Syria.

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