Bahrain, February 17th , 2008 - Another historical year for UGB net profit of US$ 220.9 million, an increase of 117 percent over 2006
 

United Gulf Bank B.S.C. – Bahrain (UGB), has announced a record net profit of US$ 220.9 million for 2007 or 27.3 US cents per share compared to US$ 101.5 million or 12.72 US cents per share in 2006. The result posted in 2007 again exceeded forecast of US$ 195 million made at KIPCO’s Shafafiyah Investors’ Forum in May 2007.

The Board of Directors has recommended to the Annual General Meeting of shareholders, held on 13 March 2008, and subject to appropriate regulatory approvals, a dividend of 65 percent in cash or 16.25 US cents per share.

Total revenues of US$ 441.3 million in 2007 was 82.5 percent higher than US$ 241.8 million in 2006. Exceptional gains of US$ 109.4 million were recorded from the sale of telecommunication assets, and from the sale of investments in United Fisheries of Kuwait and United Projects for Aviation Service Company. The results also include healthy organic growth in our wealth management and financial services sectors with KAMCO, Algeria Gulf Bank, Bank of Baghdad, Jordan Kuwait Bank and Tunis International Bank posting significant gains in their respective businesses. Investment income at US$ 200.1 million was 107.4 percent higher in 2007 than US$ 96.5 million in 2006 partly influenced by exceptional gains on the three exits mentioned earlier, and partly due to an increase of US$ 45.6 million in gains on investments held for trading and an increase of US$ 6.5 million in dividend income. Normalized net profit of the Bank at US$ 111.5 million also recorded a solid increase of 37.5 percent over the comparable figure of US$ 81.1 million in 2006.

UGB’s balance sheet grew a further US$ 316 million to reach US$ 2.7 billion, largely as a result of new investments and an increase in the carrying value of associated companies resulting from a share in increased profits. The balance sheet is supported by a strong capital base of US$ 804.7 million, as well as high levels of liquidity. The consolidated BIS ratio stood at 33 percent against 28.3 percent in 2006.

UGB’s high capitalization excludes the beneficial impact of about US$ 347.9 million (2006: US$ 271.8 million) excess in market value of quoted core investments over their book carrying costs.

UGB shares are listed both on the Bahrain and Kuwait Stock Exchanges with market capitalization in excess of US$ 1.3 billion as of year end in 2007.

Commenting on the results, William Khouri, CEO noted: "UGB posted strong performance in a difficult last quarter and 2007 has become the fifth successive year of increased historic income levels." "We are very pleased to have exceeded our net profit forecast of US$ 195 million", he continued.

UGB Managing Director and KAMCO Chairman, Masaud Hayat, commented “UGB’s strategy of incubating financial services in the emerging and developed MENA economies has reaped its benefits. As part of continuous efforts to enhance stakeholders’ value, sharpen focus and improve performance, your Board has recently been engaged in examining a number of strategic options. Appropriate disclosure will be made when these plans are fully developed”.
 

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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 2007 assets under management exceed US$ 8.5 billion (2006: US$ 6.47 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, North Africa Holding Company, Royal Capital, Syria Gulf Bank, Tunis International Bank, United Gulf Bank Securities Company, United Gulf Financial Services Company, United Cable Company, United Industries Company, United Real Estate Company, United Medical Services Company, 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$ 7.7 billion including corporate finance, advisory, new issue placement and underwriting, corporate restructuring, bond issuance and merger and acquisition.

The KIPCO Group is one of the biggest diversified holding companies in the Middle East and North Africa, with assets worth more than US$ 21 billion under management or control. The Group has substantial ownership interests in a portfolio of over 50 companies operating across 21 countries. The company’s main business sectors are financial services and media. Through the subsidiaries and affiliates of its core companies, KIPCO also has interests in Real Estate, Industry, Healthcare and the Management & Advisory sector.

 

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

 

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