22 July 2003 - United Gulf Bank's First Half Performance Doubles to $15.4 Million

Continuing strong performance by United Gulf Bank's (UGB) associate and subsidiary companies, together with a healthy contribution from its proprietary regional trading and dividend income, swelled 2003 second quarter consolidated net income to a record US$ 9.32 million, resulting in a first half performance of US$ 15.36 million.

This achievement compares with net income of US$ 9.64 million for the whole of 2002 (a 60% increase) and US$ 7.28 million for the first six months of last year (a 110 % increase). Total revenue for the first six months of 2003 reached US$ 41.23 million compared to US$ 58.2 million for the whole of 2002 and US$ 27.80 million for the first six months of 2002.

Consolidated Total Assets as at 30 June 2003 grew 1.5%, mostly in the form of liquidity, to US$ 951.76 million, while Consolidated Equity grew 10.3% to US$ 231.5 million. UGB’s BIS ratio improved to 19%.

Commenting on the results, William Khouri, Chief Executive of UGB, the investment banking arm and subsidiary of Kuwait Projects Company (Holding) KSC, Kuwait (KIPCO), said: "There is considerable momentum building in our core investments in wealth management, commercial banking and real estate, with KIPCO Asset Management Company (KAMCO), Jordan Kuwait Bank, Tunis International Bank and United Real Estate Company having record years. This positive performance has had a major effect on the market prices of these investments, as they currently trade at a substantial premium to UGB’s cost, creating profit reserves to be unlocked over time."

"In this connection, one of the significant achievements during the quarter has been the substantial progress made towards listing KAMCO on the Kuwait Stock Exchange later this year, with an increased capital."

"The underlying quality and diversity of our core asset portfolio earnings, as well as the anticipated gains in our proprietary trading and investment portfolios, should ensure the sustainability of these results going forward," he said.

UGB has total assets of around $950 million, supported by shareholders' funds of more than US$ 230 million. UGB's main subsidiaries are Tunis International Bank, Tunisia; KIPCO Asset Management Company, Kuwait; UGB Securities Co., Bahrain; and Algeria Gulf Bank (under formation) Algeria. UGB also has equity interests of 44% in Jordan Kuwait Bank, Jordan; 34% in United Real Estate Company, Kuwait; and 49% in United Industries Company, Kuwait.

UGB's activities consist of private equity and fund investments, quoted equities, asset management, corporate finance, real estate, treasury and selective commercial banking services.

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