United Gulf Bank announces profit of $4.9m for nine months

Key Financial Highlights

- Net profit of $4.9m (30 September 2011: $13.9m)
- Total income decreased to $75.3m (30 September 2011: $88.8m)
- Earnings per share US 0.60 cents (30 September 2011: $1.69 cents )
- Total assets of $1.4bn (31 December 2011: $1.77bn)
- Capital adequacy ratio in excess of 25% compared to minimum regulatory requirement of 12.5%
- Loss for 3Q12 of $11.5m (Net Profit 3Q11: $0.6m)
- Total income for 3Q12 of $15m (3Q11: $25.3m)

For the nine period ending 30 September 2012, UGB recorded a total income of $75.3m compared to $88.8m for the same period last year. Fees and commission income contributed $16m compared to $13.1m and contribution from associates increased to $30.6m compared $26.7m in nine months of 2011 due to improved results of commercial banking and real estate associates. Investment income were lower at $24.5m in nine months of 2012 due to losses on sale of investment in an associates, as against $43.9m in the same period in 2011.

For three months period ended 30 September, 2012 the Bank incurred a loss of $11.5m compared to profit $0.6m for the same period last year. The loss was mainly incurred at KAMCO, Kuwait, our subsidiary on sale of non-core assets.

On a group wide basis including minority interest, UGB Group reported net profit of $0.5m for nine months of 2012 compared to $11.1m in the same period last year.

UGB's total assets stood at $1.4bn as at 30 September, 2012, a decrease from $1.77bn as at 31 December, 2011.

UGB's assets under management at 30 September 2012 were $8.0bn, compared to $7.1bn at 31 December 2011.

Commenting on UGB's nine months results, Bank's Chairman, Mr. Masaud Hayat, said: "UGB core assets continue to perform and both commercial banking and real estate assets contribution has increased compared to last year. We will continue deleveraging our non-core assets and at the same time invest in our core activities and markets."