FGB posts net profit of Dhs890 million in second quarter

First Gulf Bank (FGB), a financial partner of choice in the UAE, posts a net profit of Dhs890 million in the second quarter of 2011. This represents an increase of 13 per cent over Q2, 2010 (Dhs787 million). The bank maintained consistent positive growth in net profit for the fourth consecutive quarter with a growth of 1.7 per cent over the previous quarter (Q1 2011). Core banking revenue at Dhs1,550 million represented 97 per cent of total income and was 11 per cent higher than the same period of last year. FGB’s first half (H1) 2011, net profit stood at Dhs1,765 million, 3.4 per cent more than the Dhs1,707 million recorded in H1 2010. Commenting on the continued growth in financial performance, Andre’ Sayegh, CEO of First Gulf Bank said: “The last quarter’s performance has confirmed that we are indeed one of the best established banks in the UAE. Our extensive understanding of the market has enabled us to capitalise on market opportunities and posted significant gains in our core banking portfolio which represented a 11 per cent jump in revenue over the second quarter of 2010. These numbers are a reflection of solid balance sheet management by FGB.” “The net interest margin stabilised at the 3.7 per cent level, the non performing loans to gross loans ratio decreased from 3.7 per cent in Q1 2011 to 3.5 per cent and the cost to income ratio was maintained below 18 per cent. Our performance justifies our business strategy, which is based on a dynamic model, resulting in a consistent solid financial performance looking to create optimized and sustainable returns for shareholders by maintaining strong business fundamentals,” Sayegh added. After cash dividend distribution of Dhs900 million in March 2011, total shareholder equity stands at Dhs25 billion and capital adequacy ratio is at 22.3 per cent which is one of the highest within the UAE banking sector. Tier 1 capital ratio at 19.1 per cent places the bank in a very solid position against future requirements of Basel III norms. Earnings per share for the first six months of this year stood at Dhs1.15, 11 per cent higher than Dhs1.04 for the same period at the end of June 2010. Abdulhamid Saeed, Managing Director, First Gulf Bank, comments: “FGB has a very strong position in terms of liquidity and capitalisation and is on track to achieve its 2011 targets. Our balance sheet growth is a reflection of the improvement in the UAE banking sector indicators and the increased stakeholders’ confidence. Our financial position and asset quality are improving every quarter. Success at aligning our strategies with new market realities has helped us steadily improve the overall financial performance.” Net Interest and Islamic financing income continued to grow in Q2 2011 at Dhs1,220 million, 6 per cent higher than previous quarter and 17 per cent higher than Q2 2010. From / Gulf Today