Bahrain-based United Gulf Bank (UGB), the asset management and investment banking platform of the KIPCO Group, on Tuesday reported a surge of 93% in its net profit rising to $38.7 million in 2010 from $29.1 million in 2009.
The bank announced basic earnings per share for full year 2010 up 91% to 4.71c (2009: 2.46c) and total income before interest and other expenses for full year 2010 up 31% to $163.3 million (2009: $ 124.6 million).
“Net loss in Q4 2010 of $2.8 million due to impairment provisions taken in Q4 2010 against investments and strengthen our balance sheet (2009: Q4 net profit of $ 1.9 million). Total assets for 2010 of $1.9 billion with asset figure reflecting the sale of Tunis International Bank as part of UGB’s group consolidation strategy (2009: $ 2.4 billion),” the bank in a statement said.
“Overall, our business has delivered a strong performance for 2010 and remains focused on our key areas of expertise within the asset management and investment banking markets within the MENA region, which we believe will deliver long term growth for both our investors and shareholders,” said Masaud Hayat, Chairman of UGB, while commenting on the full year results.
“UGB delivered a strong financial performance for the year under review despite ongoing volatility both within the global and regional markets. Income before interest and other expenses for 2010 increased by 31% to $ 163.3 million from $124.6 million in 2009.
“UGB retains a strong balance sheet with a capital adequacy ratio of 19%, well above the Central Bank of Bahrain’s minimum level of 12.5%. In order to strengthen the balance sheet and retain resources for future growth, the Board of Directors has decided not to recommend a dividend for the year ended 31 December 2010 (2009:5 percent 1.25 US cents per share).”
“UGB, post an initial phase of consolidation, has made steady progress in positioning the group as a leading asset management and investment banking operation in the region which is well positioned to deliver steady long term growth,” he added.
UGB, the investment banking subsidiary of KIPCO Group, manages a regional network of investment banking and asset management companies. Its proprietary investments include assets in real estate, private equity, structured products and quoted securities. As of 31 December 2010 assets under management exceeded $8 billion from 7.2 billion in 2009.