UGB announces first quarter net profit

15/05/2013 08:46 AST

United Gulf Bank B.S.C. ("UGB") has announced a net profit attributable to the shareholders of the parent of US$ 6.5 million for the first quarter of 2013 compared to US$ 9.1 million in the first three months of 2012, a decrease of 28.9%.

Key Financial Highlights – 1Q13

? Net profit attributable to the shareholders of the parent decreased by 28.9% to US$ 6.5 million (1Q12: US$ 9.1 million)

? Basic earnings per share decreased by 28.8% to 0.79 cents (1Q12: 1.11 cents)

? Total income before interest and other expenses decreased by 32.5% to US$ 21.9 million (1Q12: US$ 32.5 million)

? Total assets increased by 2.9% to US$ 1.26 billion (2012: US$ 1.23 billion)

? Capital adequacy ratio of 23% exceeding versus the minimum regulatory requirement of 12.5%

Financial Performance

UGB’s net profit attributable to the shareholders of the parent for the three months to 31st March 2013 decreased by 28.9% to US$ 6.5 million from US$ 9.1 million in the same period last year. On a recurring revenue basis, however, UGB revenues and profitability increased as the first quarter 2012 net profit included an exceptional gain recorded by one of UGB’s associate on the sale of property in Lebanon.

UGB also managed to reduce operating expenses by 15% from US$ 7.6 million to US$ 6.5 million and interest expense by 40% from US$ 13.3 million to US$ 8.0 million during the first quarter.

UGB’s total assets stood at US$1.26 billion as at 1Q13, which is slightly higher (2.9%) from US$ 1.23 billion recorded at the end of 2012.

Total equity increased by 1.3% to US$ 484.5 million (2012: US$ 478.2 million) and a capital adequacy ratio of 23% was maintained. This is well above the Central Bank of Bahrain’s minimum level of 12.5%.

Commenting on the results, Mr. Masaud Hayat, Chairman of UGB, said:

“The first quarter results are in line with our expectations; even though profit is lower compared to 1st quarter of 2012, recurring revenues have increased. The strict financial discipline and our focus on core assets implemented last year have begun to bear the required results.”

Press Release