17 October 2004 - UGB’s Profit Soars to US$ 32.8 Million

United Gulf Bank B.S.C. – Bahrain (UGB), the investment banking subsidiary of KIPCO (Kuwait Projects Company Holding), has announced profit of US$ 32.8 million for the nine-month period ended 30 September 2004, or 4.3 cents per share. This represents a 28 per cent increase over the US$ 25.7 million net profit earned during the same period last year, and follows UGB’s best-ever full year net profit of US$ 36.2 million in 2003, and strong first six months in 2004. UGB chief executive officer William Khouri said: "The third quarter of this year saw continued growth, as witnessed in the first half of 2004, in the earnings stream from our core businesses in asset management, investment and commercial banking and in real estate. These strategic investments in our associates and subsidiaries constitute a recurring source of significant revenue for the Bank."

"During our Silver Jubilee year we are very happy indeed to report that UGB is firmly on target to deliver another year of record earnings," he said.

UGB’s total consolidated revenue of US$ 72 million in the first nine months of 2004 increased by 8.9 per cent over the US$ 66.1 million recorded in the same period last year. Total consolidated assets at September 30, 2004 were US$ 1.25 billion, supported by total consolidated shareholders’ equity in excess of US$ 265 million.

UGB manages a diversified portfolio of investments in wealth and asset management, commercial banking, real estate, telecommunications, private equity and quoted securities.

Core investments in subsidiaries and associates include: Algeria Gulf Bank, Algeria; Gulf Egypt for Hotels and Tourism Company, Egypt; Jordan Kuwait Bank, Jordan; KIPCO Asset Management Co. (KAMCO), Kuwait; Tunis International Bank, Tunisia; UGB Securities Co., Bahrain; United Cable Company, Kuwait; United Industries Company, Kuwait; and United Real Estate Company, Kuwait.

UGB and its subsidiary KIPCO Asset Management Company (KAMCO) have a proven track record of successful investment banking transactions including corporate finance advisory, new issue placement and underwriting, mergers and acquisitions, bond issuance and investment product structuring and placement. Assets under management exceed US$ 4.0 billion.

KIPCO, with assets of more than US$ 10 billion under management or control, is one of the leading diversified holding companies in the Middle East and North Africa and a major regional force in financial services and media & technology, with further interests in real estate and industry. The largest private sector company in Kuwait, KIPCO employs more than 10,000 people internationally and its shares are the most actively traded on the Kuwait Stock Exchange.

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