UGB net profit surges 24pc to $16.5m in H1
Manama, August 8, 2012
United Gulf Bank (UGB), the investment banking platform of the Kipco Group, has posted a net profit of $16.5 million for the first half of this year, marking a 24 per cent rise over $13.3 million registered in same period last year.
UGB recorded a total income of $60.3 million for the first half of 2012 compared with $63.5 million for the six months ended June 30, 2011.
Fees and commission income contributed $11.5 million for the first half of 2012 compared with $9.5 million in the same period last year.
Contributions from associates increased to $21.6 million in the first half of this year, compared with $11.5 million in the same period last year. This was due to improved results of commercial banking and real estate associates.
Investment income reduced to $24.1 million in the first six months of 2012, compared with $38.5 million in first half of 2011 due to deleveraging and exits of non-trading investments.
UGB's net profit for the second quarter of 2012 decreased by 13.4pc to $7.3 million compared with $8.5 million for the same period last year.
UGB's total assets stood at $1.44 billion as of June 30, 2012, a decrease from $1.77bn as of December 31, 2011. The decrease in assets is part of UGB's strategy to reduce its non-core assets including some real estate holdings.
During the second quarter of this year, UGB repaid a total of $268 million of loans from internally generated funds.
So far this year, UGB has reduced its current debt with loan repayments totalling $296 million. UGB's assets under management on June 30, 2012, were $7.6 billion, compared with $7.1 billion on December 30, 2011.
"These results demonstrate the strength of UGB's underlying core assets which are performing to our expectations," chairman Masaud Hayat said.
"During the quarter, we also paid off another significant proportion of our debt from our own funds.
"Looking forward, we will continue to maintain a high level of capital and a strong liquidity position," he said. "In line with our business strategy, we will also continue to deleverage our balance sheet, while investing in our core activities and markets," he added. – TradeArabia News Service
More Finance & Capital Market Stories
- Emaar proposes 15pc cash dividends
- ABG units win top Islamic finance award
- Finance House approves 25pc cash dividends
- Qatar 'most expensive country in Gulf'
- Egypt regulator sets rules for index
- Dubai Islamic eyes Kenya, Indonesia for expansion
- ADCB to buy back 3pc of its shares
- GCC insurance growth outpaces developed markets
- Bahrain 'faces budget deficit, inflation challenges'
- Global Payment Services wins key certification
- BBK unveils big India expansion plans
- Kuwait GDP growth to hit 3.5pc in 2014
- Gulf shares tumble over EM exposure cut
- GCC bonds to gain from macro-economic climate
- French Business Council Dubai members up 18pc
- Egypt economy growth seen less strong than thought
- Sharjah approves $4.2bn budget for 2014
- Saudi non-oil sector posts solid growth in Feb
- Seera total income rises to $34m
- NBAD approves 40pc cash dividends
- NBAD sees 8-10pc loan growth
- Al Basel Group launches investment arm
- Union Insurance posts $18m profit
- Oman warns banks on conflicts of interest
- Japan to lend Tunisia $480m
- 400 to join anti-laundering seminar in Riyadh
- Lebanese insurer to head Prague Club
- UAE's first REIT plans $135m IPO
- Bahrain banking industry outlook 'positive'
- New India Assurance opens Bahrain branch