04 May 2006 - UGB Forecasts $ 85 Million 2006 Profits at KIPCO “Shafafiyah” Investors’ Forum

 

Kuwait City, May 3rd 2006 – United Gulf Bank participated today in the 2006 “Shafafiyah” (Transparency) Kuwait Projects Company (KIPCO) Group Investors’ Forum held at Sheikha Salwa Hall , Marina Hotel. During this third KIPCO Group annual forum, UGB chief executive officer Mr. William Khouri outlined the Bank’s key achievements in 2005 - when it recorded its best-ever results - which included assets under management of US$ 5.6 billion and excess market to carry value of its subsidiaries, associates and Treasury shares of US$ 623 million.

UGB’s strategic plan for 2006 calls for the continued build-out of its banking network with investment companies in Tunis and Abu Dhabi being added to its existing commercial banking, asset management and investment banking operations in Algeria, Tunisia, Libya, Cyprus, Palestine, Jordan, Syria, Iraq, Qatar, Bahrain and Kuwait.

Also planned for 2006 is a medium term borrowing to further strengthen and lengthen the Bank’s funding profile. This fund-raising follows the very successful $175 million murabaha facility in October 2005.

For 2006, Mr. Khouri forecast improvements on 2005’s record results with net income growing to US$ 85 million compared to the historic record of US$ 81 million in 2005; earnings per share rising to 10.7 US cents from 10.5 US cents; return on assets of 4.9 percent; and return on equity of 21.1 percent.

Also reviewed at the presentation were UGB’s financial results for the first three months which saw consolidated revenue of US$ 50.3 million and net income of US$ 22. 6 million. Total consolidated assets at 31st March, 2006 were US$ 1.83 billion, supported by total consolidated shareholders’ equity of US$ 450.9 million. The excess of market value over carrying cost of UGB’s investments in publicly quoted subsidiaries and affiliates now stands in excess of over
US$ 395 million.

UGB, the investment banking subsidiary of Kuwait Projects Company (Holding) (KIPCO), manages a regional network of investment / asset management companies and commercial banks. Its proprietary investments include assets in real estate, telecommunications, private equity, structured products and quoted securities. Assets under management exceed US$ 5.6 billion. UGB’s core subsidiaries and associates include: Algeria Gulf Bank, Al-Dhiyafa Investment Company, Bank of Baghdad, Jordan Kuwait Bank, KIPCO Asset Management Co. (KAMCO), Manafae Investment Company, Tunis International Bank, United Gulf Bank Securities Company, United Cable Company, United Industries Company, United Real Estate Company, United Medical Services Company and United Warehousing & Cooling. It has recently been granted a license by Qatar Financial Centre for its new asset management subsidiary , United Gulf Financial Services Company Doha, Qatar and is close to completing the formalities for establishing a full commercial bank in Syria – Syria Gulf Bank.

UGB and its subsidiary KAMCO have a proven track record of successful investment banking activities including corporate finance advisory, new issue placement and underwriting, mergers and acquisitions, bond issuance and investment product structuring and placement.

KIPCO is one of the leading diversified operating holding companies in the Middle East and North Africa with more than US$ 15 billion under management or control. Its shares are among the most actively traded on the Kuwait Stock Exchange. It has substantial ownership interests in a portfolio of 55 companies, operating throughout the region and internationally in two major business sectors: financial services and media and telecommunications. KIPCO has recently been assigned an investment grade rating by Standard & Poors.

The event at Kuwait’s Marina Hotel, organised by Group member KIPCO Asset Management Company (KAMCO) is the third in a series of financial transparency forums staged by KIPCO, the first regional business organisation to present its financial performances and forecasts in a transparent manner, with free and open dialogue.

For further information please contact United Gulf Bank on telephone +973 17533233 or email info@ugbbah.com.