Bahrain, April 24th , 2007 - UGB posts record profit of US$ 115.5 million in first quarter of 2007
 

United Gulf Bank B.S.C. – Bahrain (UGB), has announced a net profit of US$ 115.5 million for the first quarter of 2007, or 14.4 US cents per share, almost 5 times the US$ 22.6 million net profit or 2.91 US cents per share earned during the same period in 2006 and about 1.1 times over its record full year net profit of US$ 101.5 million in 2006.

Net income for the first 3 months of 2007 saw exceptional net gains on the sale of UGB’s telecom assets as well as the sale of the investment in United Fisheries of Kuwait, and also includes healthy gains from organic growth in the wealth management and  financial services sector (in particular KAMCO, Algeria Gulf Bank, Bank of Baghdad, Jordan Kuwait Bank and Tunis International Bank), as well as gains from trading activities and private equity funds.   Normalized comparable profit for 1Q07 was US$ 27.0 million, 19.5 percent more than US$ 22.6 million in 1Q06, thus reinforcing UGB’s ability to generate recurring revenues from its diversified assets portfolio.

UGB’s total consolidated revenues of US$ 175.5 million in the first three months of 2007 were  more than 3 times over the US$ 50.3 million recorded in the same period last year. Total consolidated assets at 31st March, 2007 were US$ 2.19 billion, supported by total consolidated shareholders’ equity of US$ 602.8 million. The excess of unrecognized market value over carrying cost of UGB’s investments in publicly quoted subsidiaries and affiliates now stands at US$ 312 million.   The second quarter in 2007 has kicked off with another exit as the sale of matured investment in United Projects for Aviation Services Company has been concluded resulting in a gain of US$ 14.9 million adding to the profit earned in 1Q07 which will be recorded in the second quarter of 2007.

UGB shares are listed both on Bahrain and Kuwait Stock Exchange.  The shares were amongst the top 10 GCC stock gainers in the 1Q07 with market capitalization now in excess of US$ 1 billion. 

Commenting on the results, William Khouri, CEO noted: “UGB has again achieved historic results as, with only 3 months into the year,  2007 has already become the 5^th successive year of exceeding the historic levels of the last 4 years.”

UGB Managing Director and KAMCO Chairman Masaud Hayat added that: “UGB Group with its expanding financial services network has firmly established itself as a Pan Arab universal bank providing investment banking asset management and commercial banking services in 11 countries in the MENA Region.  UGB has gone from strength to strength as reflected in its scaling new peaks in profitability and the strengthening of capital adequacy.”

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Notes to Editors:

UGB, the investment banking subsidiary of Kuwait Projects Company (Holding) (KIPCO), manages a regional network of investment/asset management companies and commercial banks. Its proprietary investments include assets in real estate, private equity, structured products and quoted securities. Assets under management exceed US$ 5.7 billion. UGB’s core subsidiaries and associates include: Algeria Gulf Bank, Al-Dhiyafa Investment Company, Bank of Baghdad, Jordan Kuwait Bank, KIPCO Asset Management Company (KAMCO), Manafae Investment Company, Tunis International Bank, United Gulf Bank Securities Company, United Cable Company, United Industries Company, United Real Estate Company, United Medical Services Company, United Gulf Financial Services Company, Syria Gulf Bank and United Warehousing & Cooling.

UGB and its subsidiary KAMCO have a proven track record of successfully completing around 58 investment banking transactions for its clients since 2001 with an aggregate value of over US$ 3.6 billion including corporate finance, advisory, new issue placement and underwriting, corporate restructuring, bond issuance and merger and acquisition.

KIPCO is an US$ 18 billion enterprise with major activities in financial services and media and a variety of other business sectors across the Middle East and North Africa. The group has substantial ownership interests in a portfolio of some 51 companies operating throughout the region and internationally.

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