First Gulf Bank net profits exceed one billion

The bank achieved a 331% increase in net profits recording AED 1.06 billion in net profits compared to AED 245 million the previous year.

The bank's total operating income reached AED 1.4 billion - a 188% increase compared to total operating income in 2004 of AED 495 million. The bank has been performing well posting strong financials over the last few years. Its net profit growth percentages have considerably increased over the past two years exceeding management targets. The bank has focused on maximizing returns and tapping into new opportunities and niche markets in the UAE in line with the positive boom in the Emirates' economy.

Abdulhamid Saeed, Chief Executive Officer, said; "Our financial performance is in line with our plans to expand in the UAE market, making the most out of the country's positive economic growth. Most of the banks in this region will post high growth rates in net profits and that is mainly due to the growth in the economy."

The bank's total assets in 2005 increased by 105% reaching AED 26.3 billion, compared to AED 12.8 billion in 2004. Total Loans and advances reached AED 13.6 billion, indicating an increase of 108% and customer deposits reached a high of AED 17.3 billion which is a 74% increase compared to the previous year.

Both net interest income and other income increased by 188% with net interest income reaching AED 880 million and other income reaching AED 544 million, contributing 38% to the total income. The earning per share has increased to AED 1.42, compared to 0.52 in 2004.

Return-on-average equity is 22% higher than 19% in 2004 in spite of an increase in shareholders equity of AED 5 billion this year. The total shareholders equity is AED 7.8 billion, a 341% increase compared to last year.

The Board of Directors is proposing a distribution of 15% as bonus shares and 25% as cash dividend subject to Central Bank approval and then to shareholders' approval at the Annual General Meeting scheduled on February 14.

First Gulf Bank recently received a rating upgrade by the Capital Intelligence Agency to A- and a rating of BBB+ with a positive outlook by Fitch International.

Abdulhamid Saeed added: "We will maintain the same growth momentum this year. Our objective will focus on expanding our business operation within the UAE, tapping into new opportunities and launching new financial services."