Bahrain, March 14th , 2008 - United Gulf Bank Announces a Record 65 Percent Cash Dividend for 2007
 

United Gulf Bank B.S.C. – Bahrain (UGB), held its 27th Annual General Meeting at its offices in UGB Tower, Diplomatic Area, Bahrain on Thursday, 13 March 2008 with more than 90 percent of shareholders represented.

Shareholders approved the financial statements for the year ended 31 December 2007 and commended the Bank for posting yet another record net profit of US$ 220.9 million for 2007, a superb 117.7 percent increase over US$ 101.5 million in 2006.

Shareholders also approved the Board of Directors recommendation for a payment of 65 percent in cash dividend (US 16.25 cents per share) compared to a 34.6 percent cash dividend (US 8.65 cents per share) paid in 2006. They also approved other appropriations including US$ 500,000 for charity and donation.

UGB Chairman, Mr Faisal Al-Ayyar, while highlighting on the results said that, “The year 2007 saw continued strong performance made by the Bank and impressive growth in net profits for the fifth consecutive year. Total revenues were at a record level of US$ 441.3 million in 2007 with a growth of 82.5 percent over US$ 241.8 million in 2006. Revenues also witnessed a healthy organic growth in wealth management and financial services sectors and included exceptional gains of US$ 109.4 million from three investment exits. Fees and commission income shot up 49.5 percent to US$ 81.4 million in 2007 from US$ 54.6 million in 2006 and profit from associated companies posted a phenomenal growth of almost 100 percent from US$ 53.5 million in 2006 to US$ 106.9 million in 2007.“

He added that, “The balance sheet expanded 13.4 percent to US$ 2.7 billion as at the year end in 2007, well supported by a strong capital base of US$ 804.7 million and a high level of liquidity. The high capitalization excludes the beneficial impact of the hidden value of about US$ 347.9 million (2006: US$ 271.8 million) being the excess in market value of quoted core investments over their book carrying costs.”

In a statement on this occasion, the Managing Director of the United Gulf Bank, Mr Masaud J Hayat, stated that, “In a continuing effort to enhance stakeholders’ value, sharpen focus and improve performance, the Bank is examining a number of strategic options some of which many result in substantial exits and reinvestments resulting in a possible quantum leap in 2008 profits. Appropriate disclosure will be made when these plans are fully developed and come to fruition.”

On behalf of the Board, Mr Hayat paid tribute to the Government of the Kingdom of Bahrain and the Government of the State of Kuwait, the Central Bank of Bahrain, the Capital Markets Supervision Directorate, the Ministry of Industry and Commerce, and to the Stock Exchanges in Bahrain and Kuwait for their encouragement and support.

Mr Hayat also expressed appreciation for the trust shown by the shareholders and thanked the Bank’s executive management and all staff for their hard work during 2007 which led to achieving record results for the fifth consecutive year.
 

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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 2007 assets under management exceed US$ 8.5 billion (2006: US$ 6.47 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 Company, Syria Gulf Bank, Tunis International Bank, United Cable Company, United Gulf Bank Securities Company, United Gulf Financial Services Company, United Industries Company, United Medical Services Company and United Real Estate Company.

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$ 8.1 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$ 21 billion under management or control. The Group has substantial ownership interests in a portfolio of over 50 companies operating across 21 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.