First Gulf Bank rights issue oversubscribed

At the end of the subscription period, which closed yesterday, the shares were over subscribed by Dh 2.7Bn, in excess of 54%. The total subscriptions received were for Dh 7.7Bn. FGB is now UAE's highest equity-based bank with a total Equity of Dh 7.2Bn.

Andre Sayegh, Chief Operating Officer of First Gulf Bank, stated, "This success can be attributed to the unwavering trust of the shareholders in FGB Board's vision and its management's strengths. The shareholders strongly believe in the bank's business strategy and their tremendous response during the last ten days was a clear confirmation of their commitment to the bank and their faith in FGB's future growth potential."

He also added that "with the increase in equity, FGB will play a key role in the domestic economy by supporting the major infrastructure projects in the various business sectors. Accordingly, this will have a substantial positive impact on the liquidity in the market. "

First Gulf Bank has recorded Dh 465Mn Net Profits during the first half of this year, 357% increase compared to the same period of last year and 90% compared to the full year of 2004. The total Operating Income in the first half of the year reached Dh 608Mn, 227% increase from the same period last year. The Total Assets reached Dh 21.2Bn, 66% increase from December last year. Total Customer Deposits increased by 76% reaching Dh 17.5Bn compared to Dh 9.9Bn at end of last year. The Loans and Advances reached Dh 9.5Bn, indicating an increase of 46% compared to the 2004 year-end results of Dh 6.5Bn.

The bank is focusing on expanding its operations and line of business across Treasury and Investment, Retail and Corporate banking sectors. The bank has succeeded in growing its customer base as well as introducing innovative financial services and products. FGB is also planning to expand its business and operations in the UAE by launching a new Islamic Finance Company and a real estate company.

The rights issue is currently under review by the external auditors of the bank and it is expected that the allotment letters and refund cheques are to be dispatched to the shareholders by 17 July.