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Dubai: First Gulf Bank (FGB) on Tuesday reported a 31 per cent growth in profit to Dh2 billion last year on its 2006 performance, a statement said.
For the year, total operating income increased by 37 per cent to Dh2.8 billion, with net interest of Dh1.3 billion representing an increase of 10 per cent.
"This effectively translates to 37 per cent once we exclude the extra interest generated during the IPO cycles of 2006-07. Other operating income totaled Dh1.5 billion, reflecting an increase of 74 per cent. Earning per share increased by 31 per cent from Dh1.23 to Dh1.61," the statement said.
The net profit of Dh621 million for the fourth quarter was 23 per cent higher than the third quarter and 57 per cent higher than the same quarter of 2006. The bank kept delivering a continuous and consistent growth quarter on quarter and year on year.
The bank's consistent growth is coupled with healthy profitability, efficiency, liquidity and capital adequacy ratios with return on average equity at 21 per cent, return on average assets at 3.3 per cent, cost to income ratio at 21.6 per cent, loan to deposits ratio at 85 per cent and a capital adequacy ratio of 15 per cent, demonstrating strong performance.
"Once again we have exceeded stakeholders' expectations and demonstrated strong growth and performance. This record performance is a reflection of the Board vision and the management's ongoing strategy, which is built on dynamism and is reinforcing FGB's position as one of the UAE's leading financial institutions operating to world-class standards," said Andre Sayegh, CEO, First Gulf Bank.
Strong growth
With assets in excess of Dh73 billion ($ 20 billion), FGB ranks among the UAE's largest financial institutions. During 2007, FGB grew its assets by 53 per cent, customers' deposits by 52 per cent, and its loan book by 77 per cent. Non-performing loans to Gross Loans were at a ratio of only 1.0 per cent, which is comparable to the best performing, highly rated international banks.
The retail business, which contributed 26 per cent to the total revenue of the bank, had a series of new product launches in 2007 which helped FGB expand its customer base.
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