First Gulf Bank net profit up 15 percent

First Gulf Bank (FGB) continues to register increasing profit rates, where it announced that its net profit for Q3, 2012 stood at Dhs1.054 billion, 15 per cent higher than the same period last year (Q3, 2011), and 4 per cent higher than Q2, 2012. This concludes the net profit figure for the first 9 months of 2012 at Dhs3 billion, 12 per cent higher than the same period last year. One of the most notable areas of growth during Q3, 2012 was the increased rate of loans, which rose by 3 per cent, further adding to the growth of 6 per cent, which was achieved in H1, 2012. The clientele base came from diverse sources, mainly UAE government related entities, retail clients, in addition to clients in the bank’s international locations. FGB net interest margin stood at 3.71 per cent by end of Q3, 2012, compared to 3.75 per cent during the same period last year. Furthermore, during the quarter, Moody’s affirmed FGB’s long term rating at ‘A2’ with ‘Stable’ outlook. Commenting on FGB’s outstanding performance, Andre’ Sayegh, CEO of FGB, said: “The solid financial performance during the first half of 2012 and throughout the third quarter is a reflection of the UAE’s growing economy as well as our consistent and balanced internal business strategy, which revolves around balance sheet strength, adequate liquidity and business diversification locally and overseas. From this angle, we continue to target and focus on selective new businesses which fit our criteria, whilst ensuring that we continue to develop our existing operations locally and in selective international locations.” Continuing to maintain its leading position in the market, FGB scored a net profit at Dhs3 billion for the first nine months of 2012, 12 per cent higher than same period last year. The group’s expenses totalled Dhs1 billion for the first nine months of 2012, 16 per cent higher than the same period last year. On the other hand, cost to income ratio was maintained at 19.5 per cent, which is the lowest in the banking industry, displaying FGB’s efficient management. Furthermore, Loans and Advances grew by 9 per cent during the first 9 months of the year and 12 per cent during the past 12 month period. Abdulhamid Saeed, FGB Managing Director and Board Member, commented: “FGB has yet again attained record profit rates due to our strong liquidity and capital position, in addition to our prudent risk management practices. As we move forward into the remainder of 2012 and onwards, we aim to continue implementing our strategy of enhancing local and international operations.” From Gulftoday