UAE lender First Gulf Bank's quarterly net drops 5%

Net income falls to AED875.3m ($238m) from AED919.7m a year ago, bank says
UAE lender First Gulf Bank's quarterly net drops 5%
BANK RESULTS: First Gulf Bank, the UAE lender controlled by Abu Dhabi’s ruling family, said first-quarter profit dropped 5 percent
By Bloomberg
Mon 25 Apr 2011 05:46 PM

First Gulf Bank, the UAE lender controlled by Abu Dhabi’s ruling family, said first-quarter profit dropped 5 percent, missing analysts’ estimates, as a one-time gain last year wasn’t repeated.

Net income fell to AED875.3m ($238m) from AED919.7m a year ago, the bank said in an e- mailed statement on Monday. The mean estimate of four analysts was for a profit of AED967.5m, according to data compiled by Bloomberg.

First Gulf Bank’s profit last year included “proceeds of AED179m from the sale of real estate,” Chief Executive Officer Andre Sayegh said in the statement. “After excluding this one-off sale, net profit of the first quarter this year is 18 percent higher” than a year ago, he said.

Provisions, including for bad loans, fell 7 percent to AED459m, while non-performing loans as a percentage of gross was stable at 3.7 percent from December, the bank said.

The shares fell 2.2 percent, the most since April 19, to AED17.6 before the results were announced. The stock has risen 1.5 percent this year compared with a 4.7 percent gain in the Abu Dhabi’s ADX Banks & Finance Index.

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