Abu Dhabi-based First Gulf Bank (FGB) yesterday said its net profit increased 11 per cent to Dh750 million in the first quarter of 2009 against the same period last year, beating analysts' expectations.
Analysts' profit forecasts ranged from Dh530m to Dh730m, in a Reuters survey in April. The revenues increase 29 per cent to Dh1,319m.
The bank's basic and diluted earning per share dropped to Dh0.47 for the quarter from Dh0.49 for the same period of 2008.
The net interest and Islamic financing for the quarter at Dh875m is 106 per cent higher than same period of last year. Net interest margin stood at 3.6 per cent, a rise of 2.3 per cent over the same period last year.
Core banking non-interest income – mainly composed of fee, commission and treasury and investments income – rose to Dh407m from Dh281m in Q1 2008, an increase of 45 per cent.
Expenses totalled Dh293 million against Dh118 million in Q4 2008, a drop of 29 per cent. Cost to income ratio was at 22 per cent when compared to the low percentage of 24 per cent for the full year 2008. André Sayegh, Chief Executive Officer, said: "The bank has a clear vision and a well-thought prudent strategy that is helping in achieving record results year after year. Despite the exceptionally difficult market conditions, the bank's success in setting strategic priorities and objectives has helped us in overcoming such conditions and in delivering strong performance."
The bank said that 95 per cent of the net profit was generated by the core banking businesses, corporate, retail, treasury, investments and Islamic banking.
The bank booked provisions of Dh220 million towards retail and corporate portfolios, highlighting a provision coverage ratio of 235 per cent and a non-performing loans to gross loans ratio of 0.7 per cent.
FGB's capital adequacy ratio stood at 17.3 per cent after the injection of Dh4 billion by the Abu Dhabi Department of Finance as Tier 1 Capital.
The bank is in the process of finalising the formalities for the conversion of Dh4.5 billion from the Ministry of Finance into Tier 2 Capital, which will push up the CAR to around 21 per cent. The process is expected to complete in the second quarter of this year and it will be part of liabilities and not deposits, an executive told Reuters, declining to give his name
The assets reached Dh109bn, which is two per cent higher than the total assets by end of year 2008. Deposits increased by Dh1.7bn to Dh75.7bn, while loans grew marginally by five per cent to Dh83.6bn. The absolute loan to deposit ratio was 110 per cent when compared to the 107 per cent in December last year and the 107 per cent in March 2008.
During Q1, the bank paid back in full its three year syndicated loan of $750m. (With inputs from agencies)
CBI q1 up 11%
UAE-based Commercial Bank International yesterday said Q1 profit rose 11 per cent as interest income increased.
Net income advanced to Dh45 million, or 0.036 dirham a share, from Dh40.7 million, or Dh0.033, in the year-earlier period, the bank said in a statement.
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