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Financial Performance
UGB's total income was $37.2m during the three months to 30 June, 2011 compared to $44.9m in the same period in 2010. Net profit for the three months to 30 June, 2011 decreased by 65% to $8.5m compared to the three months ended 30 June, 2010. In 2010, UGB recorded a gain of $43.8m on the sale of Tunis International Bank. Excluding the gain, UGB recorded a substantial increase in net profit in the second quarter of 2011 compared to same period last year.
On a six months basis, UGB recorded a total income of $63.5m for the first half of 2011 compared to $72.5m for the six months ended 30 June, 2010. Net profit for the six months to 30 June, 2011 was $13.3m, compared to $31.8m for the first half of 2010.
UGB's total assets stood at $1.78bn as at 30 June, 2011, a decrease from $1.92bn as at 31 December, 2010. The decrease in assets is a result of UGB's strategy to reduce its non-core assets including some real estate holdings.
During the second quarter, UGB raised a total of $312m in medium-term funding of and repaid a $115m club loan.
UGB's financial services company - KAMCO - also raised $43m net in medium term funds and repaid $ 71m of bonds in the quarter.
UGB's assets under management at the end of the second quarter were $7.5bn, compared to $7.6bn for the three months ended 31 March, 2011.
Commenting on UGB's first half results, bank's Chairman, Mr Masaud Hayat, said: "During the second quarter, UGB raised a total of $312m in medium term funding. This ability to raise this level of funding reflects our solid reputation amongst the financial community. These funds have strengthened our balance sheet and allow us far greater financial flexibility as we move forwards. This strong liquidity and healthy capital position combined with our conservative assert valuations provide a very strong base for UGB's growth potential."
Posted by Nadeen El Ajou
