19 April 2006 - UGB Profit increases by 39% in first quarter 2006
United Gulf Bank B.S.C. – Bahrain (UGB), has announced profit of US$ 22.6 million for the first quarter of 2006, or 2.91 US cents per share. This represents a 38.7 per cent increase over the US$ 16.3 million net profit or 2.13 US cents per share earned during the same period last year, and follows UGB’s best-ever full year net profit of US$ 81.0 million in 2005.
Commenting on the performance, UGB Chief Executive, William Khouri said, “This performance puts UGB solidly on the path for another record year of earnings. Net Income for the first 3 months of 2006 saw gains from organic growth in our financial services sector (in particular KAMCO, JKB and AGB); gains from disposal of an investment in the hospitality sector in Egypt as well as gains on the European and US markets. UGB’s diversified asset allocation strategy has once again paid off well in the quarter as the downturn in regional valuations was setoff by gains in US and European assets”.
UGB’s total consolidated revenue of US$ 50.3 million in the first three months of 2006 increased by 18.2 per cent over the US$ 42.5 million recorded in the same period last year. Contributing to this record first quarter revenue was investment income of US$ 15.8 million, fees & commissions of US$ 14.2 million and share in profit of associated companies of US$ 13.3 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 investment include assets in real estate, telecommunications, private equity, structured products and quoted securities. Assets under management exceed US$ 5.4 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.
For further information please contact United Gulf Bank on telephone +973 17533233 or email firstname.lastname@example.org.