UGB announces first quarter net profit of $9.1m

Key Financial Highlights

. First quarter net profit of $9.1m (1Q11: $4.8m)
. Basic earnings per share for 1Q12 of 1.11 cents (1Q11: 0.59 cents)
. Total income before interest and other expenses for1Q12 $32.5m (1Q11:
$26.3m)
. Total assets of $1.75bn (2011: $1.77bn)
. Capital adequacy ratio of 18% exceeding versus the minimum regulatory requirement
of 12.5%

Financial Performance

UGB�fs net profit for the three months to 31st March 2012 increased by 89% to $9.1m compared to $4.8m in the same period last year. Basic earnings per share also increased to 1.11 cents from 0.59 cents in 2011.

The increase in net profit is due to improved results of commercial banking and real estate associates. Contribution from associates increased to $20.6m compared to $2.6m 1Q11. Fees and commission income also increased to $6.7m compared to $4.2m in 1Q11. Investment income reduced to $3.7m compared to $17.9m in 1Q11. In 1Q11 investment income included $16.3m from exit of a private equity investment.

UGB�fs total assets stood at $1.75bn as at 1Q12, which is slightly down from the $1.77bn recorded at the end of 2011. UGB retains a strong balance sheet with total equity of $621.1m (2011: $603.2m) and a capital adequacy ratio of 18%, well above the Central Bank of Bahrain�fs minimum level of 12.5%.

Commenting on the results, Mr Masaud Hayat, Chairman of UGB, said, �"The first quarter results demonstrate the strength of UGB�fs asset base. We have not only posted strong profits for the first quarter but also improved our recurring revenue stream. UGB�fs strategy is to maintain a strong level of liquidity and a healthy equity base and this has allowed us to reap the rewards of our strict financial discipline and cost-cutting measures."