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Key Financial Highlights
- Net profit for Full Year 2010 up 93% to $38.7 (2009: $20.1m)
- Basic earnings per share for Full Year 2010 up 91% to 4.71c (2009: 2.46c)
- Total income before interest and other expenses for Full Year 2010 up 31% to $163.3m (2009: $124.6m)
- Net loss in Q4 2010 of $2.8m due to impairment provisions taken in Q4 2010 against investments and strengthen our balance sheet (2009: Q4 net profit of $1.9m)
- Total assets for 2010 of $1.9bn with asset figure reflecting the sale of Tunis International Bank as part of UGB's group consolidation strategy (2009: $2.4bn)
- Capital adequacy ratio of 19% exceeding the minimum regulatory requirement of 12.5%
Commenting on the full year results, Mr Masaud Hayat, Chairman of UGB, said: "Overall, our business has delivered a strong performance for 2010 and remains focused on our key areas of expertise within the asset management and investment banking markets within the MENA region, which we believe will deliver long term growth for both our investors and shareholders."
Financial Performance
UGB delivered a strong financial performance for the year under review despite ongoing volatility both within the global and regional markets. Income before interest and other expenses for 2010 increased by 31% to $163.3m from $124.6m in 2009.
Net profit for the 12 months to 31 December 2010 was up 93% to $38.7m compared to $20.1 in 2009, with a 91% increase in basic earnings per share of 4.71c from 2.46c in 2009, which is a significant year on year improvement.
Total assets stood at US$1.9bn as at 31 December 2010, which is down from the $2.4bn recorded at the end of 2009. The decrease in assets follows the disposal of UGB's stake in Tunis International Bank undertaken during the second quarter of 2010.
UGB retains a strong balance sheet with a capital adequacy ratio of 19%, well above the Central Bank of Bahrain's minimum level of 12.5%.
In order to strengthen the balance sheet and retain resources for future growth, the Board of Directors have decided not to recommend a dividend for the year ended 31 December 2010 (2009:5% 1.25 US cents per share).
UGB, post an initial phase of consolidation, has made steady progress in positioning the group as a leading asset management and investment banking operation in the region which is well positioned to deliver steady long term growth.
Posted by Nadeen El Ajou
