Bahrain-based United Gulf Bank (UGB) has announced an increase of 69 per cent in its net profit which hit $11.6 million for the first quarter of the year, compared with $6.9 million in the same period last year.

The UGB is the merchant banking subsidiary of Kuwait's Kipco Group.

The bank's total income increased to $40.5 million at the end of March this year compared with $21.9 million in the corresponding period last year.

Total equity increased to $548.5 million from $459.6 million last year and a capital adequacy ratio of 14 per cent was maintained.

The Central Bank of Bahrain's minimum requirement is 12.5 per cent.

Total assets increased to $2.6 billion from $1.3 billion at December 31, 2013 due to consolidation of FIMBank.

UGB consolidated its stake in FIMBank-Malta, raising equity ownership to 60.5 per cent from 30 per cent as at December 31 last year through voluntary bid acquisition.

FIMBank is a publicly-listed and Malta-based international trade finance specialist.

Additional shares acquisition was completed early this year, providing the group with a majority shareholding.

"Acquisition of FIMBank is a strategically-significant deal which will widen the scope of banking activities of UGB Group and complements our geographical footprint," UGB chief executive Rabih Soukarieh said.

"First quarter results are encouraging and focus during the year will be to maintain the momentum and enhance the recurring revenue stream," he added.-TradeArabia News Service