Bahrain, July 23rd , 2007 - UGB posts record profit of US$ 168 million in first half of 2007
 

United Gulf Bank B.S.C. – Bahrain (UGB), has announced a net profit of US$ 168.3 million for the first half of 2007, or 20.9 US cents per share, almost 4 times the US$ 45.4 million net profit or 5.8 US cents per share earned during the same period in 2006 and almost  1.7 times UGB’s record full year net profit of US$ 101.5 million in 2006.

Net income for the second quarter of 2007 of US$ 52.8 million saw exceptional net gains  to UGB Group of US$ 15 million from the sale of KAMCO's stake in United Project Aviation Company, Kuwait, and also includes continued healthy gains from organic growth in the wealth management and financial services sector (in particular KAMCO, Algeria Gulf Bank, Bank of Baghdad, Jordan Kuwait Bank and Tunis International Bank), as well as gains from trading activities and private equity funds.   Normalized comparable profit for 2Q07 was US$ 37.8 million, 65% percent more than US$ 22.9 million in 2Q06. Normalized comparable profit for 1H07 was US$ 64.9 million or 43% higher than the US$ 45.4 million for 1H06 thus reinforcing UGB’s ability to generate recurring revenues from its diversified assets portfolio.

UGB’s total consolidated revenues of US$ 285.6 million in the first six months of 2007 were more than 2.6 times over the US$ 106.6 million recorded in the same period last year. Total consolidated assets at 30 June 2007 were US$ 2.5 billion, supported by total consolidated equity of US$ 692.6 million. UGB's balance sheet is conservatively constructed with high levels of liquidity and low leverage. UGB bolstered its long term resources in the quarter with a US$ 200 million five year term loan and consequently funding sources are now mostly long term debt and equity.

The excess of unrecognized market value over carrying cost of UGB’s investments in publicly quoted subsidiaries and affiliates now stands at US$ 350 million. 

UGB shares are listed both on the Bahrain and Kuwait Stock Exchanges with market capitalization now in excess of US$ 1 billion. 

Commenting on the results, William Khouri, CEO noted: “UGB has again achieved a historic quarter and 2007 has already become the fifth successive year of historic levels of net income with improved normalized operating profits contributing significantly alongside exceptional gains from portfolio exits. The quality and inherent profit generative capacity of our assets has once again shone through, he concluded”

UGB Managing Director and KAMCO Chairman, Masaud Hayat, commented on the achievements during the quarter citing the 25^th Anniversary of Tunis International Bank, the launch of Syria Gulf Bank and the signing of the US$ 200 million term loan.

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Notes to Editors:

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, private equity, structured products and quoted securities. As of 30 June 2007 assets under management exceed US$ 7.3 billion. UGB’s core subsidiaries and associates include: Algeria Gulf Bank, Al-Dhiyafa Investment Company, Bank of Baghdad, Jordan Kuwait Bank, KIPCO Asset Management Company (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, United Gulf Financial Services Company, Syria Gulf Bank and United Warehousing & Cooling.

UGB and its subsidiary KAMCO have a proven track record of successfully completing around 58 investment banking transactions for its clients since 2001 with an aggregate value of over US$ 3.6 billion including corporate finance, advisory, new issue placement and underwriting, corporate restructuring, bond issuance and merger and acquisition.

KIPCO is an US$ 18 billion enterprise with major activities in financial services and media and a variety of other business sectors across the Middle East and North Africa. The group has substantial ownership interests in a portfolio of some 51 companies operating throughout the region and internationally.

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