Bahrain-based United Gulf Bank (UGB), the investment banking arm of KIPCO Group, has reported a net profit of $4.2 million for last year compared to $6.7 million in 2012.

The bank's net profit attributable to shareholders of the parent was $2.6 million last year against $11 million in 2012, reported the Gulf Daily News, our sister publication.

The decrease in profit attributable to shareholders of the parent is due to provisions taken at one of the commercial banking associates, it stated.

UGB managed to reduce interest and operating expenses. Basic earnings per share of 0.32 cents last year compared to 1.34 cents in 2012.

Net profit in for the fourth quarter of last year was $0.7 million compared to $6.2 million in 2012.

Total income before interest and other expenses $64.3 million last year when compared to $93 million the year before.

The bank's total assets at the end of last year was $1.26 billion compared to $1.23 billion in 2012.

"UGB has managed to maintain strong capital and liquidity positions throughout the year," chief executive Rabih Soukarieh said.

"Even though 2013 results were not in line with our expectations, our core assets and underlying entities are well positioned to benefit from the growth expected in 2014."

Capital adequacy ratio of 17.7 per cent last year against 23 per cent in 2012 exceeds the minimum regulatory requirement of 12.5 per cent.

UGB board said it will not be recommending any dividend for 2013. The bank's balance sheet remains strong with total equity of $459.6 million compared to $478.2 million in 2012.-TradeArabia News Service