United Gulf Bank (UGB) has announced a net profit of $9.1 million for the first quarter of this year year, an 89 per cent increase over the first three months of 2011.

UGB is the asset management and investment banking platform of the Kipco Group.

The increase in net profit is due to improved results of commercial banking and real estate associates.

Contribution from associates increased to $20.6 million compared with $2.6 million last time.

Fees and commission income also increased to $6.7 million compared with $4.2 million in the corrsponding period.

Investment income reduced to $3.7 million against $17.9 million although the 2011 first quarter included a $16.3 million exit from a private equity investment.

UGB's total assets stood at $1.75 billion, slightly down from the $1.77bn recorded at the year-end.

UGB retains a strong balance sheet with total equity of $621.1 million and a capital adequacy ratio of 18 per cent, well above the Central Bank of Bahrain's minimum level of 12.5 per cent.

"The first quarter results demonstrate the strength of UGB's asset base," said chairman Masaud Hayat.

"We have not only posted strong profits for the first quarter but also improved our recurring revenue stream.

"UGB's strategy is to maintain a strong level of liquidity and a healthy equity base and this has allowed us to reap the rewards of our strict financial discipline and cost-cutting measures," he added. – TradeArabia News Service