Record profit for First Gulf as stocks recover

RECORD PROFIT: First Gulf Bank posted its sixth consecutive record profit in the fourth quarter.

Abu Dhabi's First Gulf Bank posted its sixth consecutive record profit in the fourth quarter, exceeding analysts' forecasts in a year when UAE and other Gulf stock markets recovered.

Net income in the three months to December 31 surged 57% from a year earlier to 621 million dirhams ($169.1 million), the bank said in a statement. It did not give other quarterly data.

Net interest income during the year rose 10% to 1.3 billion dirhams, and other operating income surged 74% to 1.5 billion dirhams, it said.

"The treasury and investment business contributed 30% of total revenue ... as well as generating considerable fee and investment income," the bank said, without being more specific.

Shares of First Gulf have risen about 50% since October, when HSBC Holdings and Deutsche Bank recommended investors buy the stock, as rising oil prices fuelled economic growth in the world's fifth-largest exporter of the fuel.

Trading on the share was suspended on Tuesday, when the bank held a board meeting.

Analysts' forecasts for the bank's fourth-quarter profit ranged from 371.85 million dirhams to 511.52 million dirhams, in a Reuters survey last month, with the average of eight forecasts at 438.2 million dirhams.

Abu Dhabi's main index has risen more than 26% and Dubai more than 29% since October 1.

Annual earnings per share rose to 1.61 dirhams, from 1.23 dirhams, the bank said. Loans surged 77%, it said, without being more specific.

The board recommended a 20% cash dividend and one free share for every 10 held by investors. (Reuters)

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