Bahrain-based United Gulf Bank (UGB), the asset management and investment banking platform of the Kipco Group, has reported a 114 per cent increase in net profit during the first half of this year compared to the same period last year.

Net profit increased to $31.8 million compared to $14.9 million during the first half of 2009, said a bank statement.

Total income was up 10 per cent to $72.6 million ($65.9 million in H1 2009) and operating income grew 50 per cent to $28.9 million ($19.2 million -H1 2009). Earning per share was 3.88c.

Total assets decreased to $1.8 billion from $2.5 billion in the first half of 2009, mainly reflecting the disposal of UGB’s stake in Tunis International Bank. UGB retains a strong balance sheet with a capital adequacy ratio of 18 per cent, well above the Central Bank of Bahrain’s minimum level of 12.5 per cent, the bank said. 

Assets under management were $7.1 billion as at 30 June 2010, compared with $8.5 billion for the first six months of 2009, reflecting the continuing challenging environment for global and regional financial markets.  On a quarterly basis, assets under management remained flat, with $7.2 billion recorded as at March 31, 2010.

Masaud Hayat, chairman of UGB, said: “The period saw the culmination of our strategy to focus UGB on its core areas of expertise: asset management and investment banking.  We have now completed the transfer of UGB’s four commercial banking assets to our sister company, Burgan Bank, following the sale of our stake in Tunis International Bank in June.  Although global and regional markets continue to be volatile and will likely remain the case for at least the medium term, we believe our conservative management of our business, combined with its strategic realignment as Kipco’s asset management and investment banking business, will enable us to capture the value that the region’s markets offer.”

David Rhodes, chief executive officer, UGB, said: “Our business has made significant progress both financially and strategically during the first half of the year.  Although the market remains uncertain, we are seeing positive signs of improvement across our business and we continue to manage the business prudently.  With the sale of our stake in Tunis International Bank, UGB is now completely focused on its core activities of asset management and investment banking and on becoming a leading asset management and investment banking institution in the MENA region.  We see significant opportunity for the business over the long term as the region continues to develop economically, financially and socially.” – TradeArabia News Service