United Gulf Bank B.S.C. (c) (UGB), the asset management and investment banking platform of the KIPCO Group, announced a net profit of $16.5m for the six months ended 30 June, 2012 – a 24% increase over same period last year.
Key Financial Highlights
– Net profit of $16.5m (1H11: $13.3m)
– Total income of $60.3m (1H11: $63.5m)
– Earnings per share 2.00¢ (1H10: 1.62¢)
– Total assets of $1.44bn (2011: $1.77bn)
– Capital adequacy ratio of 25% exceeding the minimum regulatory requirement of 12.5%
– Net profit for 2Q12 of $7.3m (2Q11: $8.5m)
– Total income for 2Q12 of $27.8m (2Q11: $37.2m)
Financial Performance
UGB recorded a total income of $60.3m for the first half of 2012 compared to $63.5m for the six months ended 30 June, 2011. Fees and commission income contributed $11.5m for the first half of 2012 compared to $9.5m in the same period last year. Contributions from associates increased to $21.6m in the first half of 2012, compared $11.5m in the same period last year. This was due to improved results of commercial banking and real estate associates. Investment income reduced to $24.1m in the first six months of 2012, compared to $38.5m in first half of 2011 due to deleveraging and exits of non-trading investments.
UGB’s net profit for the second quarter of 2012 (the three months to 30 June, 2012) decreased by 13.4% to $7.3m compared to $8.5m for the same period last year.
UGB’s total assets stood at $1.44bn as at 30 June, 2012, a decrease from $1.77bn as at 31 December, 2011. The decrease in assets is part of UGB’s strategy to reduce its non-core assets including some real estate holdings.
During the second quarter of 2012, UGB repaid a total of $268m of loans from internally generated funds. So far this year, UGB has reduced its current debt with loan repayments totaling $296m.
UGB’s assets under management at 30 June, 2012 were $7.6bn, compared to $7.1bn at 30 December, 2011.
Commenting on UGB’s first half results, the bank’s Chairman, Mr. Masaud Hayat, said, “These results demonstrate the strength of UGB’s underlying core assets which are performing to our expectations. During the quarter, we also paid off another significant proportion of our debt from our own funds. Looking forward, we will continue to maintain a high level of capital and a strong liquidity position. In line with our business strategy, we will also continue to deleverage our balance sheet, while investing in our core activities and markets.”
Ameinfo
