Bahrain, October 24th , 2007 - UGB achieves annual 2007 profit target of US$ 195 million in nine months
 

United Gulf Bank B.S.C. – Bahrain (UGB), has announced a net profit of US$ 195 million for the first nine months of 2007, or 24.1 US cents per share, almost 2.7 times the US$ 71.1 million net profit or 9.01 US cents per share earned during the same period in 2006 and almost 2 times UGB’s record full year net profit of US$ 101.5 million in 2006.

Net income of US$ 195 million for the nine month period of 2007 saw continued healthy gains from organic growth in the wealth management and financial services sector despite the turmoil in the global capital markets during July and August.  UGB continues to benefit from the diversification of its trading books and relative non-correlation of GCC and global markets. Normalized comparable profit for nine months was US$ 91.6 million, 28.8 % more than the US$ 71.1 million for the nine months of 2006.

UGB’s total consolidated revenues of US$ 364.2 million in the first nine months of 2007 were more than 2 times over the US$ 167.6 million recorded in the same period last year. Total consolidated assets at 30 September 2007 were US$ 2.5 billion, supported by total consolidated equity of US$ 751.8 million. UGB's balance sheet is conservatively structured with high levels of liquidity and low leverage. UGB enjoys substantial liquidity support from its market counterparties with only 30% of its uncommitted interbank lines utilized.  UGB also prepaid US$ 125 million of term facilities in the quarter under review. The Bank continues to enjoy a strong capitalization base.

The excess of unrecognized market value over carrying cost of UGB’s investments in publicly quoted subsidiaries and affiliates was at US$ 336.1 million at end of September.

UGB shares are listed both on the Bahrain and Kuwait Stock Exchanges with market capitalization now in excess of US$ 1.2 billion. 

Commenting on the results, William Khouri, CEO noted: "UGB has achieved a solid performance in a difficult quarter and 2007 has become the fifth successive year of historic income levels." "We are very pleased to have achieved in nine months our profit forecast for the full year.", he continued.

UGB Managing Director and KAMCO Chairman, Masaud Hayat, commented on UGB's expanding universal banking network as the third quarter saw the establishment of Royal Capital, a 36% KIPCO Group joint venture investment company in Abu Dhabi, as well as the capital increase of Syria Gulf Bank to US$ 60 million and steps to further consolidate UGB's holdings in other Group entities.
 

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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. As of 30 September 2007 assets under management exceed US$ 7.7 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,  Royal Capital, Syria Gulf Bank, 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, 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$ 7.7 billion including corporate finance, advisory, new issue placement and underwriting, corporate restructuring, bond issuance and merger and acquisition.

The KIPCO Group is one of the biggest diversified holding companies in the Middle East and North Africa, with assets worth more than US$ 20 billion under management or control. The Group has substantial ownership interests in a portfolio of 51 companies operating across 18 countries.  The company’s main business sectors are financial services and media. Through the subsidiaries and affiliates of its core companies, KIPCO also has interests in Real Estate, Industry, Healthcare and the Management & Advisory sector.

 

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