First Gulf Bank Q1 net profit down 4.8pc
Abu Dhabi, April 25, 2011
First Gulf Bank (FGB) reported a 4.8 per cent decline in quarterly profit on Monday, missing estimates, as the lender's 2010 results were buoyed by a one-time gain.
FGB, the United Arab Emirates' second largest lender by market value, said it had first quarter net profit of Dh875 million ($238.2 million). Profit stood at Dh919.73 million in the prior-year period, according to Reuters data.
Analysts had forecast average profit of Dh929.44 million in a Reuters poll.
First quarter profit in 2010 included Dh179 million from the sale of real estate, the lender said, adding this year's first quarter profits rose 1.2 per cent over the fourth quarter.
Core banking revenues, which exclude income from subsidiaries and associate firms, rose to Dh1.58 billion in the quarter, up 8 per cent. Total net interest and Islamic financing income was up 10 per cent to Dh1.14 billion.
'We have posted significant gains represented by 8 per cent jump in revenue over the first quarter of 2010 in our core banking portfolio,' Andre Sayegh, FGB's chief executive, said in a statement.
'We are focusing on growing our core business as we are well positioned to increase lending to the targeted sectors in the coming quarters of 2011 and beyond,' he said in the statement.
FGB booked provisions totaling Dh459 million in the quarter, down 7 per cent from last year. Loans grew 4.1 per cent to Dh97.1 million while deposits jumped 10.1 per cent to Dh98.5 million in the first quarter.
FGB shares closed down 2.2 per cent on Monday on the Abu Dhabi index, which was down 0.8 per cent. The bank issued its results after the market closed.-Reuters