Bahrain, 12 August 2010 - United Gulf Bank Financial Results For The Half Year Ended 30 June 2010
 

 

Bahrain, 12 August 2010:  United Gulf Bank B.S.C. (c) (UGB), the asset management and investment banking platform of the KIPCO Group, today announced its financial results for the six months ended 30 June 2010.

Key Financial Highlights: 

• Net profit increased 114% to $31.8 million (H109: $14.9 million)

• Total income up 10% to $72.6 million (H109: $65.9 million)

• Operating income grew 50% to $28.9 million (H109: $19.2 million)

• Earnings per share 3.88c (H109: 1.82c)

• Total assets $1.8 billion (H109: $2.5 billion)

Masaud Hayat, Chairman of UGB, said,
“The period saw the culmination of our strategy to focus UGB on its core areas of expertise: asset management and investment banking. We have now completed the transfer of UGB’s four commercial banking assets to our sister company, Burgan Bank, following the sale of our stake in Tunis International Bank in June. Although global and regional markets continue to be volatile and will likely remain the case for at least the medium term, we believe our conservative management of our business, combined with its strategic realignment as KIPCO’s asset management and investment banking business, will enable us to capture the value that the region’s markets offer.”

Financial Performance: 

UGB delivered a solid financial performance in the first six months of the year despite the continued volatility of global and regional markets. Income before interest and other expenses increased by 10% to $72.5 million from $65.9 million in the same period for 2009. Net profit for the six months to 30 June 2010 increased by 114% to $31.8 million compared to the six months ended 30 June 2009, with earnings per share increasing to 3.88c from 1.82c in 2009. UGB recorded a net profit of $24.3 million for the 2Q10, however, excluding the gain on transfer of Tunis International Bank, a loss of approximately $20 million was sustained. This loss was largely attributable to the company’s trading portfolio following the downturn in global and regional markets during the second quarter of 2010.

Total assets decreased to $1.8 billion from $2.5 billion in the first half of 2009, mainly reflecting the disposal of UGB’s stake in Tunis International Bank. UGB retains a strong balance sheet with a capital adequacy ratio of 18%, well above the Central Bank of Bahrain’s minimum level of 12.5%.

Assets under management were $7.1 billion as at 30 June 2010, compared to $8.5 billion for the first six months of 2009, reflecting the continuing challenging environment for global and regional financial markets. On a quarterly basis, assets under management remained flat, with $7.2 billion recorded as at 31 March 2010.

David Rhodes, Chief Executive Officer, UGB, commented,
“Our business has made significant progress both financially and strategically during the first half of the year. Although the market remains uncertain, we are seeing positive signs of improvement across our business and we continue to manage the business prudently. With the sale of our stake in Tunis International Bank, UGB is now completely focused on its core activities of asset management and investment banking and on becoming a leading asset management and investment banking institution in the MENA region. We see significant opportunity for the business over the long term as the region continues to develop economically, financially and socially.”

 

– Ends –

About UGB:
UGB, the investment banking subsidiary of KIPCO Group, manages a regional network of investment banking and asset management companies. Its proprietary investments include assets in real estate, private equity, structured products and quoted securities. As of 30 June 2010 assets under management exceeded US$ 7.1 billion (31 December 2009: US$ 7.2 billion). UGB’s core subsidiaries, associates and joint venture include: Al Dhiyafa Holding Company, Al Sharq Financial Brokerage Company, KIPCO Asset Management Company (KAMCO), Manafae Investment Company, Millennium Private Equity Limited, North Africa Holding Company, Royal Capital Company, Syria Gulf Bank, United Networks (formerly United Cable Company), United Gulf Bank Securities Company, United Gulf Financial Services – North Africa, United Industries Company and United Real Estate Company.

UGB and its subsidiary KAMCO have a proven track record of successfully completing around 60 investment banking transactions for its clients since 2001 with an aggregate value of over US$ 8 billion including corporate finance, advisory, new issue placement and underwriting, corporate restructuring, bond issuance and merger and acquisition.

www.ugbbh.com

 

About KIPCO Group:
KIPCO Group is one of the largest diversified holding companies in the Middle East and North Africa, with consolidated assets of US$ 18.6 billion. The Group has substantial ownership interests in a portfolio of over 60 companies operating across 26 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 the real estate, manufacturing, airline, education and management advisory sectors.

www.kipco.com

For further information:

United Gulf Bank United Gulf Bank
Anne Khoshabi
T: +97317533233
E: akhoshabi@ugbbah.com
 

FD
Jon Earl
T: +97317537072
E: jon.earl@fd.com