Bahrain-based United Gulf Bank (UGB) earned a net profit attributable to the shareholders of $6.5 million for the first quarter of this year, compared with $9.1 million in the first three months of 2012.

On a recurring revenue basis, however, UGB revenues and profitability increased as the first quarter 2012 net profit included an exceptional gain recorded by one of UGB's associates on the sale of property in Lebanon, reported the Gulf Daily News, our sister publication..

UGB also managed to reduce operating expenses by 15 per cent from $7.6 million to $6.5 million and interest expense by 40 per cent from $13.3 million to $8 million.

UGB's total assets stood at $1.2 billion, which is slightly higher by 2.9 per cent from $1.23 billion recorded at the end of 2012.

Total equity increased by 1.3 per cent to $484.5 million and a capital adequacy ratio of 23 per cent was maintained.

This is well above the Central Bank of Bahrain's minimum level of 12.5 per cent.

"The first quarter results are in line with our expectations even though profit is lower compared with the first quarter of 2012 and recurring revenues have increased," said chairman Masaud Hayat.

"The strict financial discipline and our focus on core assets implemented last year have begun to bear the required results," he added.-TradeArabioa News Service