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Thu 16 Oct 2008 02:32 AM

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Bahrain's UGB bank Q3 up 10-fold after stake sale

KIPCO unit United Gulf Bank reports quarterly profit of $276mn after exceptional item.

Bahrain-based United Gulf Bank boosted its third-quarter net profit ten-fold, after selling its stake in a Jordanian bank in July.

Net income in the three months to Sept. 30 jumped to 74 million dinars ($276.1 million), or 94.92 fils per share, compared with 7.49 million dinars, or 9.23 fils, in the same period a year earlier, the bank said in a statement on the Kuwait bourse website on Wednesday.

The bank, a unit of Kuwait Projects Co (KIPCO), did not give a reason behind the profit rise but in July, UGB sold its 43.86 percent stake in Jordan Kuwait Bank to Burgan Bank in a deal worth $450 million. UGB said then it would post a profit before expenses of almost $280 million from the sale which would be booked in the third quarter.

Nine-month profit of 92.94 million dinars included unrealised losses of 8.3 million dinars, the bank said. (Reuters)