FGB profit dips 9% in Q3

ABU DHABI — First Gulf Bank has earned a net profit of Dh849 million in the third quarter, showing a nine per cent year-on-year dip, as income from Islamic banking and fees rise. However, for the first nine months, the net profit rose four per cent to Dh2.555 billion over the same period a year ago.

By Haseeb Haider

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Published: Thu 28 Oct 2010, 11:24 PM

Last updated: Mon 6 Apr 2015, 11:45 AM

Abu Dhabi based bank’s core banking profit rose 15 per cent to Dh821 million, even though, the profit for the quarter was lower than the previous comparable period.

The total revenue of Dh1.546 billion for the quarter ending September 30 is eight per cent lower year-on-year, the bank said in a statement.

Net Interest and Islamic Financing at Dh1.072 billion, which represented 70 per cent of the total revenue, increased by a nine per cent compared to the same period of last year and the Corporate and Retail fees grew 43 per cent year-on-year to Dh435 million.

Andre Sayegh the Chief Executive Officer of FGB called the financial performance as ‘robust’. Over the last 12 months ending September 30th, the total assets enlarged by 11 per cent, the loans improved by six per cent and the deposits were up by nine per cent. “We will maintain our focus on the core strength of the bank in Corporate, Retail and Treasury activities, Andre Sayegh added. Abdulhamid Saeed, FGB’s Managing Director said the First Gulf Bank has ‘consistently maximized value for all its stakeholders.’

Total Shareholders’ Equity stood at Dh23.7 billion at the end of September 2010, nine per cent higher than a year ago, and Capital Adequacy Ratio was at 23.4 per cent including a Tier 1 ratio of 20.2 per cent.

The Bank continued to show robust balance sheet and financial indicators at the end of September 2010 as total assets grew ten per cent year-on-year to Dh137.5 billion.

The loans slipped 6.2 per cent year-on-year to Dh95.6 billion while the deposits grew 3.24 per cent to Dh92.3 billion. “The bank strategy of targeting its ratios resulted in building a solid balance sheet position over the years, Andre Sayegh said.“This combination of ratios is unmatched in the UAE banking industry,” he said.

“First Gulf Bank is in a very strong financial position and will maintain its primary objective of maximizing value for all its stakeholders,” André Sayegh said. He said that the overseas expansion, subsidiaries and associated companies will continue to present complementary support to our core businesses.” —haseeb@khaleejtimes.com

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