FGB Q1 net profit rises 
7% on interest income

ABU DHABI - Handsome growth in the net interest income pushed the First Gulf Bank’s net profits by seven per cent year in the first three months of the year to Dh935 million.

By (Staff Report)

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Published: Tue 24 Apr 2012, 11:12 PM

Last updated: Sat 4 Apr 2015, 7:20 AM

The bank reported a flat growth in customers’ deposits and loan and advances while its assets grew one per cent to Dh159.727 billion.

FBG’s reported a four per cent rise to its core banking revenue.

A big portion of strong earnings came from the net interest and Islamic financing income which grew 13 per cent to Dh1.297 billion in the quarter compared with the same period last year.

The income generated from fees and commissions by the Corporate and the Retail Bank totalled Dh307 million, which despite being 24 per cent lower than the same period a year ago, were back on ascending trend exceeding the last quarter of 2011 by 26 per cent. Abu Dhabi’s financial institution efficiently managed its overheads in the quarter with a cost to income ratio of 19.4 per cent, which is by far the lowest in the UAE banking industry, the bank claimed.

The group expenses amounted to Dh324 million, which was 22 per cent higher than the same period last year.

On starting the year with a strong momentum, Andre’ Sayegh, chief executive officer of FGB said, “We continue to display a consistent growth. Our strength is our balanced business strategy and our structured marketing capabilities to recognise enticing business opportunities, both on the local and international levels. This strategy enabled us to achieve a solid net profit.”

Net profits were split between 97 per cent contributions from FBG’s core banking businesses, while the remaining were generated from the subsidiaries and associated companies of the group, he said.

FGB’s focus on its emerging global expansion plans continued to generate positive results. The revenue made by the international operations contributed four per cent to the quarter’s earnings, the bank said in a statement. Abdulhamid Saeed Managing Director FBG speaking on the future strategy said it will “focus on strengthening our customers’ relationships and on building a strong brand position. We will continue to work towards maintaining a top leading position in the financial industry and maximising returns,” he added.

The managing director said FBG has improved provision coverage ratio, which exceeded 100 per cent and stood at 102 per cent by end of the period against 97 per cent at the end of March 2011. Bearing in mind, that the collaterals held by the bank against its loan portfolio are over and above the coverage ratio, without factoring the exposure to Dubai Holding which is still under restructuring, the asset quality has stabilised and we are comfortable with these levels of provisioning,” said Sayegh.


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