UGB announces H1 net profit

Attributable to the shareholders of parent of $16.4 million

14/08/2014 10:52 AST

United Gulf Bank (UGB) today announced a net profit attributable to the shareholders of parent of $16.4 million for the six months ended 30 June, 2014 – a 70 per cent increase ($9.7 million) over same period last year.

Net Income attributable to the shareholders of parent for the quarter increased by 95 per cent to $6.2 million compared to $3.2 million in 2Q13.

On a six months basis, UGB recorded a total income of $86.5 million for the first half of 2014 compared to $37.6 million for the six months ended 30 June, 2013.

UGB consolidated FIMBank – Malta from 31 March 2014 in which equity ownership was increased to 60.5 per cent from 30 per cent through voluntary bid acquisition. UGB’s total assets increased to $2.5 billion as at 30 June 2014, compared to $1.3 billion at 31 December 2013 due to consolidation of FIMBank.

During the quarter UGB repaid and raised additional funding for longer maturities and UGB long term rating was also affirmed by Capital Intelligence at BBB. Total equity increased to $554 million (2013: $459.6 million) and a capital adequacy ratio of 15 per cent was maintained. This is well above the Central Bank of Bahrain’s minimum level of 12.5 per cent. Commenting on the results, Mr. Rabih Soukarieh, Chief Executive Officer of UGB, said: “Our results demonstrate both strength and quality of our underlying assets. UGB’s capital position remain strong, with capital adequacy ratio of 15 per cent, UGB will continue to focus on improving recurring revenues stream while maintaining adequate capital and liquidity resources to meet any unforeseen events.”

CPI Financial