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Mon 24 Oct 2011 06:31 PM

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Abu Dhabi's First Gulf Bank posts 8% rise in Q3 profit

Net profit increase driven by higher revenues as bank beats forecasts of analysts

Abu Dhabi's First Gulf Bank posts 8% rise in Q3 profit
Andre Sayegh, CEO, First Gulf Bank

Abu Dhabi's First Gulf Bank on Monday reported an 8 percent rise in third quarter net profit driven by higher revenues and beating analyst forecasts.

The bank reported a net profit of AED920m ($250.68m) up from AED849m in the same quarter last year. Analysts polled by Reuters forecast an average net profit of AED860.29m.

Net interest and Islamic financing revenue in the third quarter was AED1.35bn, up 26 percent from the same period last year.

"This success can be attributed to our cautious yet diverse approach to the financial and business markets," chief executive Andre Sayegh said in a statement.

"The UAE medium and long-term fundamentals are clearly very strong, we are well placed to witness future growth in this market."

Net profit for the first nine months of the year was AED2.7bn, up 5 percent over the same period last year. But fees and commissions fell 40 percent to AED261m due to "regulatory changes in retail lending in the UAE."

Loans and advances grew 7 percent to AED102bn in the third quarter while deposits grew 4 percent to AED96.0bn. Total assets stood at AED156.3bn at the end of September 2011, up 11 percent over that of December 2010.

The bank booked AED379.3m in loan provisions in the third quarter versus AED406.2m, down 7 percent, it said in the statement.

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