First Gulf Q4 profit up, beats expectations

Abu Dhabi, January 30, 2012

First Gulf Bank, Abu Dhabi's second-largest bank by market capitalisation, on Monday beat analysts' expectations with an 18 per cent rise in fourth-quarter profits, driven by interest income and Islamic financing.

The bank made a net profit of 1.02 billion dirhams ($278.5 million) in the final three months of 2011, up from 865.2 million dirhams in the same period of 2010.

Analysts polled by Reuters forecast an average net profit of  837.7 million dirhams for the quarter. Full-year net profit for 2011 was 3.71 billion dirhams, up 8 percent on 2010.

The bank booked provisions of 303.7 million dirhams in fourth quarter, taking full-year provisions to 1.55 billion dirhams, it said.

Loans and advances grew 10 percent to 104.7 billion dirhams in 2011 while deposits grew 5 percent to 103.5 billion dirhams. Total assets stood at 157.5 billion dirhams ending December 2011, up 12 percent over that of December 2010.

FGB's board has proposed a cash dividend of 1 dirham per share and a bonus share issue where each existing share will be eligible for one new share, the statement said.

The bank raised $200 million through a two-year bilateral loan from an international bank in third quarter 2011, the statement said, without giving details.

FGB shares did not trade on Monday following a 1 percent gain on Sunday.-Reuters

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