First Gulf Bank (FGB), one of the leading banks in the UAE, has registered a nine per cent drop in its third quarter net profit which fell to Dh849 million ($231 million) compared to last year.

Announcing the results on Wednesday, the FGB said the total revenue rose 5 per cent to Dh1.54 billion compared to previous quarter, while it was 8 per cent lower than the same period last year.

The bank's net interest and Islamic Financing stood at Dh1.07 billion, which represented 70 per cent of the total revenue, posting a 9 per cent increase compared to last year.

The corporate and retail fees stood at Dh435 million, which represented 28 per cent of the revenue for the quarter, increased by 43 per cent compared to last year, according to a statement from FGB.

Andre Sayegh, chief executive officer, FGB, said, 'For the first nine months of 2010, the net profit surged four per cent to Dh2.55 billion compared to the same period last year. Compared to the last quarter, the bank said it had witnessed an increase of 8 per cent this quarter.'

The banks' operating income surged 8 per cent to Dh4.67 billion for the first nine months, while the operating expenses stood at Dh804 million, one per cent higher than the same period last year.

The earning per share stood at Dh1.59 for the first nine months, up 7 per cent compared to the same period last year, Sayegh said.
 
The bank, he said, continued its focus on prudent and efficient management of its balance sheet and income statement which reflected in strong financial ratios.

The cost to income ratio stood at 17.2 per cent, net interest margin at 3.6 per cent, return on average assets at 2.6 per cent, capital adequacy ratio at 23.4 per cent, and return on average equity stood at 14.8 per cent.

“The bank strategy of targeting its ratios resulted in building a solid balance sheet position over the years. We are very proud to state, that this combination of ratios is unmatched in the UAE banking industry. First Gulf Bank is in a very strong financial position and will maintain its primary objective of maximizing value for all its stakeholders,” Sayegh said.

“We are very pleased with the robust results of the Third Quarter and we will maintain our focus on the core strength of the bank in Corporate, Retail and Treasury activities. The overseas expansion, subsidiaries and associated companies will continue to present complementary support to our core businesses” commented Sayegh.

Over the last 12 months ending September 30, 2010, FGB's total assets increased by 11 per cent, the loans by 6 per cent and the deposits by 9 per cent after excluding the MOF deposits which were converted into Tier II capital at the end of 2009.

Commenting on the results, Abdulhamid Saeed, FGB managing director said, “First Gulf Bank, under its dynamic Board leadership and committed management, has consistently maximized value for all its stakeholders.”-TradeArabia News Service