Bahrain, 3rd November 2009: United Gulf Bank B.S.C. – Bahrain (UGB), has announced a net profit of US$ 18.2 million (2.23 US cents per share) for the first nine months of 2009, 94.8 per cent lower than US$ 348.9 million (42.62 US cents per share) earned for the same period in 2008. Results in the same period in 2008 were exceptional due to gains realized from the Bank’s exit from its investment in Jordan.
UGB posted a net profit of US$ 3.3 million in the third quarter of 2009 compared to US$ 277.4 million in the same period last year. Income before interest and other expenses for the nine month period in 2009 was US$ 91.8 million, compared to US$ 422.4 million in the same period in 2008.
UGB’s results for last year’s third quarter, included a gain of US$ 280 million before provision and expenses from the sale of Jordan Kuwait Bank.
UGB’s total assets as at 30 September, 2009 were US$ 2.3 billion compared to US$ 2.9 billion as at year end 2008. UGB’s capital adequacy ratio at the end of September 2009 was 15 percent against the minimum regulatory requirement of 12 percent.
During the third quarter, Moody’s Investors Services confirmed UGB’s Baa3/Prime-3 deposit rating and D+ bank financial strength rating with a negative outlook. Moody’s said that ‘the negative outlook on UGB’s ratings is driven by the increasingly challenging operating environment for investment banking and asset management.’
Commenting on the third quarter results, Mr Masaud Hayat, Managing Director of UGB said:
“Our diversification strategy has again proved its strength and UGB has posted a profit despite challenges faced by the investment banking industry due to the global economic slowdown. Even though profitability is lower, UGB’s strategy has been to maintain a strong level of liquidity and a solid equity base. Moody’s recent rating confirmation reflects positively on UGB’s ability and capacity to manage its business risks during the difficult conditions the global banking industry is currently facing.”
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:
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 September 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 Private Equity, 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 14 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, manufacturing, and the management & advisory sector.
For further information:
Telephone: United Gulf Bank on +973 17533233 or email firstname.lastname@example.org