26 Jun 2005 - KIPCO “Shafafiyah” Investors’ Forum Opens with Financial Strength, Stability and Growth Indicators

The opening day of the “Shafafiyah” (Transparency) Kuwait Projects Company (KIPCO) Group Investors’ Forum heard presentations by the Group’s investment banking subsidiary United Gulf Bank (UGB) of Bahrain, and United Real Estate Company (URC) of Kuwait, which detailed both companies’ financial strength and stability as positive indicators of growth.

KIPCO, the US$ 15 billion regional business enterprise, is staging the three-day Forum to highlight its financial transparency, in a series of investor presentations by the Group and its directly-held listed subsidiaries to audiences of fund managers, analysts, shareholders and clients.

The event at Kuwait’s Marina Hotel, organised by Group member KIPCO Asset Management Company (KAMCO) is the second in a series of financial transparency forums staged by KIPCO, the first regional business organisation to present its financial performances and forecasts in a transparent manner, with free and open dialogue.

UGB Chief Executive Officer William Khouri outlined the bank’s key highlights in 2004 - its Silver Jubilee year when it recorded best-ever results - which included assets under management of US$ 4.9 billion and the launch of subsidiary Algeria Gulf Bank.

Significant new business developments included signing a MoU with the Bank of Baghdad; Phase I approval from the Syrian Central Bank for setting up a commercial bank in Syria; initiatives to open investment firms in Doha and Tunis; and arranging bridge finance and guarantees for Wataniya Telecom in Algeria.

In 2004 fund raising, a three-year US$ 65 million syndicated Murhaba facility was signed, and inter-bank lines were increased from US$ 286 million in December 2003 to more than US$ 500 million in March - of which Islamic Commodity Murhaba lines rose from US$ 94 million to US$ 262 million.

For 2005, Mr. Khouri forecast improvements on 2004’s record results: 16 per cent growth in net income to US$ 50 million compared to US$ 43 million; return on assets increasing to 4 per cent from 3.1 per cent; earning per share rising to 6.1 US cents from 5.7 US cents; and return on equity increasing to 16.8 per cent from 15.5 per cent.

Omran Hayat, managing director and chief executive officer of United Real Estate Company, Kuwait’s third largest player in the real estate market and the second largest in assets, as well as one of the top 10 GCC real estate companies by market capitalisation, gave a summary of URC’s focussed, capital efficient business strategy, which has seen it involved in high-profile developments both in Kuwait and elsewhere in the Middle East.

He said the company’s strategy was to focus on high-end retail/ office segments with strong and stable cash flows from a lower risk/ higher return commercial rental portfolio. Expansion in Kuwait and established regional footholds in Egypt and Lebanon was taking place under a strategy of creating value through focus, effective leverage of capital base, and use of stringent investment criteria.

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UGB Arabic Presentation (2.32 MB)
UGB English Presentation (1.61 MB)

Burgan Bank Arabic Presentation (1.66 MB)
Burgan Bank English Presentation (1.62 MB)

GIC Arabic Presentation (913 KB)
GIC English Presentation (819 KB)

KIPCO Arabic Presentation (11.5 MB)
KIPCO English Presentation (11.6 MB)

URC Arabic Presentation (834 KB)
URC English Presentation (912 KB)

Wataniya Arabic Presentation (1.39 MB)
Wataniya English Presentation (1.29 MB)

For further information please contact United Gulf Bank on telephone +973 17533233 or email info@ugbbah.com.