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First Gulf Bank's H1 net up 80pc

DUBAI - First Gulf Bank has reported 80 per cent increase in net profits to Dh101.8 million compared to the same period last year.

Abdulhamid Saeed, Chief Executive Officer of the First Gulf Bank said: "We have set aggressive strategies and budgets for this year and our financial performance results are as per plan. The market is still full of opportunities and we will ensure that we maximise our returns in this booming economy." The balance sheet shows very robust growth in loans and investments. the total loans and advances were up by 46 per cent at Dh6.1 billion. Additionally, investments increased by 32 per cent to Dh1.4 billion compared to the same period last year and 10 per cent higher since December 2003. The total assets were also up by 40 per cent at Dh8.3 billion compared to the first half last year.

The total shareholders equity increased to Dh1.6 billion due to the recent issuance of convertible bonds worth Dh800 million to four strategic partners. The convertible bonds are reflected as a tier one capital in the balance sheet as of June 2004. The customer deposits increased by 28 per cent to Dh6.4 billion compared to the same period last year.

"The increase in equity will instantly have a positive effect on our bank rating and capital adequacy, it is also the starting point to our growth and expansion plans to be a world class organisation maximising returns to our stakeholders, " said Saeed

The Income statement indicates positive performance and prospects for the bank. the total operating income increased 59 per cent to Dh186 million compared to the same period last year. While the non-interest income contribution increased to 40 per cent of the total operating Income and the interest income recorded 44 per cent increase to Dh110.9 million.