Bahrain, 28th July, 2009 - United Gulf Bank announces a half year net profit of US$ 14.9 million
 

 

Bahrain, 28 July 2009: United Gulf Bank B.S.C. – Bahrain (UGB), has announced a net profit of US$ 14.9 million (1.82 US cents per share) for the six months ended 30 June 2009, 79.2 percent lower than US$ 71.5 million (8.76 US cents per share) earned for the same period in 2008.
 

UGB posted a net profit of US$ 5.6 million in the second quarter of 2009 compared to US$ 40.8 million in the same period last year. UGB’s results of US$ 9.3 million for the first quarter in 2009 included net gains made from the sale of the Bank’s investments in Algeria Gulf Bank and the Bank of Baghdad. UGB’s positive results in the second quarter were achieved in the midst of continued difficulties in the financial markets both regionally and globally.

Income before interest and other expenses for the six months period was US$ 65.9 million, compared to US$ 112.9 million in June 2008, which includes additional provisions of US$ 14.7 million as a prudent measure towards any further asset erosion.

UGB’s total assets as at 30 June 2009 were US$ 2.5 billion compared to US$ 2.9 billion as at year end 2008, with the Bank proactively managing its balance sheet in order to enhance its liquidity and asset quality, as well as preserving its shareholders’ equity. UGB’s capital adequacy ratio at the end of June 2009 was 16 percent against the minimum regulatory requirement of 12 percent.

Commenting on the results for the first half of the year, Mr Masaud Hayat, Managing Director of UGB said:

“The markets have continued to pose challenges to the investment banking industry. However, UGB’s performance demonstrates the strength of its asset quality and ability to maintain profitability even under difficult market conditions.”

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 June 2009, assets under management exceeded US$ 8.4 billion (2008: US$ 9 billion). UGB’s core subsidiaries and associates include: Al Dhiyafa Investment Company, Al Sharq Financial Brokerage 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 Gulf Financial Services – North Africa, 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