United Gulf Bank – Bahrain (UGB) has announced net profit of $22.9 million attributable to shareholders of the bank for the second quarter of 2006.
This represents a 41per cent increase over the $16.2 million net profit earned during the same period last year.
Six months net profits attributable to shareholders of the bank reached $45.4 million, or US 5.77 cents per share compared to $ 32.5 million in the first half of last year, an increase of 40 per cent. This follows UGB’s best-ever full year net profit of $81.0 million in 2005.
Commenting on the performance, UGB chief executive William Khouri said: “Following significant earnings recorded in the first two quarters of 2006, we are closer to achieving yet another year of exceptional performance.
“The diversity and quality of UGB’s assets continue to ensure stability of growth in profits.
“Almost 11 revenue lines now contribute to UGB’s earnings.
“In particular, the following activities made solid contributions in the first half: commercial banking, investment banking especially portfolio-related fee income and to a lesser extent real estate and rental income.
“We are particularly gratified by the strong performance of our banks in Tunisia, Algeria, Jordan and Iraq as well as our wealth management subsidiary Kamco’s continued important contribution. Moreover, while the GCC and Emerging Markets witnessed increased volatility this year, UGB’s portfolio managers have performed reasonably well.”
He added: “Overall, we are relatively optimistic in achieving the $85 million year end net income forecast at the Shafafiah Forum held in Kuwait on May 3 as we are currently over half way there.
UGB’s total consolidated revenue of $106.6 million in the first six months of 2006 increased by 30 per cent over the $82 million recorded in the same period last year.
Contributing to this record first half revenue was investment income of $28.8 million, fees and commissions of $32.9 million and share in profit of associated companies of $28.7 million.
Total consolidated assets at June 30, 2006 were $1.93 billion, supported by total consolidated equity of US$ 482.8 million.
The excess of market value over carrying cost of UGB’s investments in publicly quoted subsidiaries and affiliates now stands over $292.3 million.
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, telecommunications, private equity, structured products and quoted securities.
Assets under management exceed $5.6 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 (under formation) and United Warehousing & Cooling.
UGB and its subsidiary Kamco have a proven track record of successful investment banking activities including corporate finance advisory, new issue placement and underwriting, mergers and acquisitions, bond issuance and investment product structuring and placement.
UGB has a long term investment grade rating by Moody’s (Baa3) and Capital Intelligence (BBB+).
Kipco is one of the leading diversified operating holding companies in the Middle East and North Africa with more than $15 billion under management or control.
Its shares are among the most actively traded on the Kuwait Stock Exchange.
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