first gulf bank registers a new record net profit of aed1.39 billion for the first nine months of 2007
First Gulf Bank (FGB), one of the UAE’s leading financial institutions headquartered in Abu Dhabi with assets of AED 62 billion, has announced its financial results for the first nine months of 2007, showing an increase of 21.5% in its net profit, compared with the same period last year, to reach AED 1.39 billion.
The bank’s performance for the third quarter totally conforms with its strategy and reinforces FGB’s position as one of the best performers in the banking sector.
Growth has been recorded across the bank’s core banking businesses – corporate, retail treasury, and investment - together with subsidiaries and associate companies that are gradually being integrated into the mainstream, and reinforces the bank’s strategy to diversify and grow revenue.
The net profit of AED 507 million for the third quarter of 2007 is 7% higher than the previous quarter and 29% higher than the third quarter of last year.
“Yet again FGB has exceeded the expectations of its stakeholders with consistent growth and an impressive performance, we have been showing a consistent growth quarter on quarter for the last six quarters” said André Sayegh, CEO of First Gulf Bank.
“We at FGB have a vision, encapsulated in our company mission of growing the business, whilst insisting that everything we do is carried out with professionalism and dedication. This has been demonstrated by our track record of capturing a strong share of the local market, bringing us to our current position as one of the fastest growing financial institutions in the region,” added Sayegh.
From September 2006 to September 2007, the total assets of the bank have increased by 71% to reach AED 61.8 billion, loans and advances have risen by 80% to reach AED 40.2 billion and deposits are now AED 44.5 billion – an increase of 94%. Earnings per share for the first nine months of 2007 increased to AED 1.11 from AED 0.91 in the first nine months of last year.
In the third quarter, the retail offerings have strengthened with the launch of Siraj, a full range of Shari’ah compliant products and services, coming hard on the heals of Makkah – the region’s first stand-alone unsecured Islamic credit card. This is in line with the Bank’s commitment to launching Shari’ah compliant products to meet the growing market demand for such products within the region, and strategy of product diversification.
To cater for another important retail segment, FGB has also launched First Wealth – a wealth management service targeted at high net worth individuals, leveraging the bank’s unique market understanding, knowledge and expertise to ensure a sound investment vehicle for the region.
“This will position FGB as one of the leading players in what is likely to be a major growth area,” added Sayegh.
In corporate banking, FGB has been concentrating on new dimensions through structured products and becoming active in syndications.
In line with the bank’s global expansion plans and revenue diversification strategies, FGB opened its first international representative office in Singapore with plans to open yet more offices in other major financial centres.
Last month, FGB signed an MoU with the Economic & Social Development Fund (ESDF) in Libya to establish a fully fledged commercial bank in the country’s capital, Tripoli.
“The Libyan economy is diversifying with a favourable economic outlook and FGB will be there and ready to capitalise on this major opportunity,” added Sayegh.
This year, FGB was upgraded to an A+ rated bank by Fitch. This rating reflects FGB’s sound capitalisation, growing franchise and good profitability and liquidity.
“We have so far created five subsidiaries and associate companies, which help diversify our business and build on market opportunities, all of which are generating a solid stream of revenue: Mismak as an investment property arm, Green Emirates Properties for real estate management and brokerage, Aseel for Islamic finance, FMI for merchant banking activities, and First Gulf Financial Services for shares brokerage activities,” added Sayegh.
Commenting on the results, Abdulhamid Saeed, Managing Director of FGB stated “These results are the hard evidence that we continue to deliver our vision and commitment of maximising profit for our shareholders, while delivering exceptional service to our customers. The bank has a strong team of professionals implementing its vision, and we are committed to investing in their development, and rewarding their efforts. We are also to hiring and training the best local talents through our Emiratisation programme.”
“With pride we can state that First Gulf Bank is today recognised as a world-class organisation, and we therefore have every intention of continuing to follow this solid, proven strategy,” concluded Saeed.
