UGB announces a 74 percent cash dividend for 2008
Bahrain, 15 March 2009: United Gulf Bank’s Board of Directors has recommended a cash dividend of 74 percent per share (US$ 18.5 cents per share) for 2008, a total of US$ 150.6 million, for the approval of Bank’s General Assembly. This compares to the 65 percent (US$ 16.25 cents per share) cash dividend made in 2007.
KIPCO, the major shareholder, will underwrite up to US$ 130 million for UGB in subordinated Tier II capital to add to the Bank’s financial strength, if required.
Last month, UGB announced a net profit of US$ 207.2 million, or US$ 25.31 cents per share, for the year ended 31 December 2008, a decrease of 6.2 percent on the US$ 220.9 million profit, or US$ 27.3 cents per share, for 2007.
UGB’s Managing Director, Mr Masaud Hayat, said:
”Our dividend distribution reflects the balance we strive for between market expectations, preserving the Bank’s financial health and the investment opportunities we anticipate will occur as the current financial crisis unfolds.”
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Notes to Editors:
The 2007 revenues of US$ 358.1 million described within this release refer to revenue which was restated due to the discontinued operations of financial subsidiaries and affiliates already sold or under a sale agreement.
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 December 2008, assets under management exceeded US$ 9.0 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 Healthcare 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.
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