Bahrain-based United Gulf Bank (UGB),  the investment banking arm of KIPCO Group, has reported net profit of $2.2 million for the nine months ended September 30 as against $4.9 million for the same period last year.

On a nine months basis, UGB recorded a total income of $44.6 million compared with $75.3 million earlier, reported the Gulf Daily News, our sister publication.

Contribution from associates decreased to $16.1 million from $30.6 million as of September-end last year and fees and commission income contributed $13.2 million this time around as against $16 million earlier.

The bank said it managed to reduce interest cost to $23.4 million from $35.3 million in September last year.

Salaries and administrative expenses also decreased to $18.1 million from $27.6 million. Earnings per share for the nine-month period were 27 cents, versus 60 cents earlier.

Net loss for the third quarter this year was lower at $7.4 million versus loss of $11.5 million for the same quarter last year.

The bank's total income for the quarter fell to $7 million from $15 million earlier.

The bank has reported capital adequacy ratio of 19 per cent, exceeding the minimum regulatory requirement of 12.5 per cent.

"We have been consistent in our strategy of deleveraging our balance sheet while keeping tight control over our operating expenses," chief executive Rabih Soukarieh said.

"We have also sought to increase the share of recurring income as percentage of our overall revenues," he stated.

He said while the third-quarter results were not in line with expectations, the management remained confident about future performance.

Total assets of $1.26 billion as of September 30, were higher than $1.23 billion as on December 31 last year.

Assets under management at $9.6 billion were also higher when compared with $8.1 billion.-TradeArabia News Service