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UGB announces $168m profit for 2007 first half

DUBAI — United Gulf Bank B.S.C. Bahrain (UGB), has announced a net profit of $168.3 million for the first half of 2007, or 20.9 US cents per share, almost four times the $45.4 million net profit or 5.8 US cents per share earned during the same period in 2006.

Net income for the second quarter of 2007 of $52.8 million saw exceptional net gains to UGB Group of $15 million from the sale of KAMCO's stake in United Project Aviation Company, Kuwait, and also includes continued healthy gains from organic growth in the wealth management and financial services sector (in particular KAMCO, Algeria Gulf Bank, Bank of Baghdad, Jordan Kuwait Bank and Tunis International Bank), as well as gains from trading activities and private equity funds.

Normalised comparable profit for 2Q07 was $37.8 million, 65 per cent per cent more than $22.9 million in 2Q06. Normalised comparable profit for 1H07 was $64.9 million or 43 per cent higher than the $45.4 million for 1H06 thus reinforcing UGB's ability to generate recurring revenues from its diversified assets portfolio.

UGB's total consolidated revenues of $285.6 million in the first six months of 2007 were more than 2.6 times over the $106.6 million recorded in the same period last year. Total consolidated assets at June 30 2007 were $2.5 billion, supported by total consolidated equity of $692.6 million.

UGB's balance sheet is conservatively constructed with high levels of liquidity and low leverage. UGB bolstered its long term resources in the quarter with a $200 million five year term loan and consequently funding sources are now mostly long term debt and equity.

The excess of unrecognised market value over carrying cost of UGB's investments in publicly quoted subsidiaries and affiliates now stands at $350 million.

UGB shares are listed both on the Bahrain and Kuwait Stock Exchanges with market capitalisation now in excess of $1 billion.