The Abu Dhabi-based First Gulf Bank (FGB) announced a 23 percent increase in its net profit in 2001. The 61.7 million Emirati dirham ($16.8 million) net profit is Dh11.5 million higher than its profit of Dh50.2 million in 2000 and the highest ever in the 22 year history of the bank, according to a bank press release.
CEO Abdulhamid Saeed stated: "Overall, our strategy to concentrate on core corporate banking and diversification into treasury and investment banking resulted in a net profit growth of 23 percent. This growth is significant in the context of the economic environment."
"In line with our planned business expansion programs, FGB total assets increased from Dh2.4 billion in 2000 to Dh3.4 billion in 2001, a growth rate of 42 percent. Our corporate banking group, which continued to strengthen our portfolio mix, has performed well with an increase in our overall loans portfolio from Dh1.4 billion in 2000 to Dh1.7 billion in 2001, a growth rate of 21 percent. In line with our diversification into treasury and investment banking, investments have increased from Dh63 million in 2000 to Dh678 million in 2001, a growth rate of 976 percent."
FGB's customer deposits grew from Dh1.8 billion in 2000 to Dh2.8 billion in 2001, a growth rate of 56 percent. Total operating income increased from Dh96 million in 2000, to Dh119 million an increase of Dh23 million, which reflects a growth rate of 24 percent.
Non-interest income increased from Dh15 million in 2000 to Dh38 million in 2001, displaying a growth rate of 153 percent. On account of the higher profit FGB's equity has increased from Dh500 million in 2000 to Dh557 million in 2001 a 11 percent increase.
FGB's earning per share has moved up significantly by 21 percent from 0.14 fils to 0.17 fils. This is reflected in the 70 percent growth in FGB's share, which has moved from Dh2.50 at the beginning of the year to Dh4.25 currently.
Saeed said "FGB's Corporate Banking Group focuses on building a solid portfolio that is current, diversified, and profitable. It is constituted of a mix of quality private sector and public sector companies, as well as other strategic relationships, that fit the parameters of FGB's recognized lending criteria." FGB has actively participated in financing several national infrastructure projects in water and electricity, oil and gas, manufacturing, housing, as well as trading activities.
In 2001, FGB Treasury was transformed into a fully functional Treasury and Investment Division. Major emphasis is given to increase fee based income and interest rate sensitivity management. FGB launched a new corporate identity in 2001. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
