Bahrain, 7th May, 2009 - UGB posts US$ 9.3 million first quarter profit
 

 

Bahrain, 7 May 2009: United Gulf Bank B.S.C. – Bahrain (UGB), has announced a net profit of US$ 9.3 million (1.14 US cents per share) for the first quarter ended 31 March 2009, a decrease of 69.8 percent compared to the net profit of US$ 30.7 million (3.8 US cents per share) for the same period in 2008. UGB said the decline in net profit reflects the continuing turmoil in the global equity markets and the impact on investment banking activities.  

UGB’s first quarter results include the net gains made from the sale of the Bank’s investments in Algeria Gulf Bank and the Bank of Baghdad to Burgan Bank. The sale was part of UGB’s strategy to focus on investment banking operations and asset management, while simultaneously realizing the hidden value of its commercial banking assets. Income before interest and other expenses for the first quarter of 2009 was US$ 29.9 million compared to US$ 50.1 million in March 2008.  

UGB’s total assets as at 31 March 2009 were US$ 2.5 billion compared to US$ 2.9 billion as at year end 2008. The reduction in the balance sheet reflects the Bank’s commitment to preserving liquidity and capital management. UGB’s capital adequacy ratio at the end of the first quarter 2009 stood at 16 percent against the Central Bank of Bahrain’s minimum requirement of 12 percent. 

Commenting on the first quarter results, Mr Masaud Hayat, Managing Director of UGB said: 

“UGB’s first quarter 2009 performance, demonstrates its ability to realize values in difficult economic conditions and troubled markets. UGB continues to closely monitor the business environment and will seek opportunities to make future investments only at appropriate valuations.”

Mr Hayat added that UGB reported its second best year of profitability in 2008, with a net income of US$ 207.2 million.

“UGB paid out its highest ever cash dividend of 74 percent (18.5 US cents per share) in 2008 and this was a clear measure of our successful business strategy,” he said. 

UGB, the investment banking subsidiary of Kuwait Projects Company (Holding) (KIPCO), manages a regional network of investment banking and asset management companies.

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Notes to Editors:

About UGB:

UGB, the investment banking subsidiary of Kuwait Projects Company (Holding) (KIPCO), manages a regional network of investment banking and asset management companies. Its proprietary investments include assets in real estate, private equity, structured products and quoted securities. As of March 2009, assets under management exceeded US$ 7.4 billion (2008: US$ 9 billion). UGB’s core subsidiaries and associates include: Al Dhiyafa Investment Company, KIPCO Asset Management Company (KAMCO), Manafae Investment Company, Millennium Finance Corporation, North Africa Holding Company, Royal Capital Company, Syria Gulf Bank, Tunis International Bank, United Networks (formerly United Cable Company), United Gulf Bank Securities 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.

UGB is part of the KIPCO Group - one of the biggest diversified holding companies in the Middle East and North Africa, with assets worth more than US$19 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:

Telephone: United Gulf Bank on +973 17533233 or email info@ugbbah.com