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The record results delivered dramatic improvements in the key profitability and shareholder return measures. The Return on Equity improved from 4.8% in the first 6 months of 2005 to 17.5% for the first 6 months of 2006; and EPS (earnings per share) climbed to 21 cents per share compared with 5 cents per share in H1 2005. The cost/income ratio (the measure of bank operational efficiency) improved from 68.1% in H1 2005 to 45.2% in H1 2006. UIB continues to invest heavily, but wisely, in building its business, but the resulting first half cost growth of 75% was more than offset by the corresponding 163% surge in operating income.
UIB has also doubled its capital to US$233 million following a successful round of fund raising in July 2006. UIB will use the enhanced capital base to fund further organic and inorganic business growth, which in turn will allow the Bank to offer clients a fully integrated range of competitive Shari'ah-compliant products and services on a global basis.
Mr. Majid Al-Refai, UIB Managing Director & Chief Executive Officer said:
"We have achieved a significant uplift in both our earnings and profitability and significantly strengthened our income streams, liquidity and capital base. I am very pleased to announce that our recent fund raising was successful and has doubled the Bank's capital. The combination of increased earnings and enhanced capital provides a solid platform for expansion via strategic acquisitions and continued organic growth."
UIB has consolidated a strong market position since its inception in 2004 by creating a foothold in selected markets, particularly in the GCC countries, Southeast Asia and the United States. The increased capital base enhances the Bank's earnings potential going forward.
Posted by Anne-Birte Stensgaard, Senior News Editor
