Bahrain, October 15th , 2008 - United Gulf Bank announces record 79% increase in third quarter net profit to US$ 348.8 million,

‘UGB well positioned to meet current market challenges’ says Managing Director
 

Bahrain, October 15th , 2008: United Gulf Bank B.S.C., Bahrain (UGB) has announced a net profit of US$ 348.8 million for the first nine months of 2008, a 78.9 percent increase in the US$ 195.0 million posted in the same period last year.

Net profit includes gains from the transfer of Jordan Kuwait Bank to Burgan Bank. However, excluding this gain, the profit for the quarter posted a growth of 24.9 percent over the same period last year. The significant improvement in performance over the 1H08 net profit of US$ 71.5 million, in the wake of the deepening global financial crisis, affirms the strength of the Bank’s underlying diversified asset base.

EPS at 30 September 2008 was US cents 42.62 up from US cents 8.76 at 30 June 2008 and from US cents 24.15 at 30 September 2007

UGB Managing Director, Mr Masaud Hayat, commented:

“Despite a virtual collapse of the global financial markets, rising funding costs and a significant drop in securities values in the GCC markets in September 2008, UGB has delivered substantial growth in its net profit.”

He added:

“The global financial turmoil is causing extreme volatility and the world is faced with the worst financial crisis in recent times. Policy makers across the globe are coordinating their actions to avert a collapse of the system. It is an unusual time, very unusual.”

“UGB is well positioned to manage its risk books and we have enough cushion in our earnings and liquidity to meet the current market challenges.”

UGB’s total consolidated assets increased to US$ 3.54 billion as at 30 September 2008, up from US$ 3.14 billion as at 30 June 2008 and from US$ 2.5 billion in September 2007.  Total equity increased to US$ 1.03 billion from US$ 809 million as at 30 June 2008.  At 30 September 2007 total equity stood at US$ 752 million.

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Note to editors:

About UGB: 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 September 2008 assets under management exceeded US$ 12.7 billion (2007: US$ 8.5 billion). UGB’s core subsidiaries and associates include: Algeria Gulf Bank, Al Dhiyafa Investment Company, Bank of Baghdad, KIPCO Asset Management Company (KAMCO), Manafae Investment Company, Millennium Finance Corporation, 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 and United Real Estate Company.

UGB and its subsidiary KAMCO have a proven track record of successfully completing around 60 investment banking transactions for its clients since 2001 with an aggregate value of over US$ 8 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.