UAE's First Gulf Bank posts 13% rise in Q3 net profit

Lender makes profit of $324m in third quarter, boosted by higher operating income
UAE's First Gulf Bank posts 13% rise in Q3 net profit
By Reuters
Mon 28 Oct 2013 07:54 PM

First Gulf Bank, the second-largest lender by market value in the UAE, on Monday posted a 13 percent rise in third-quarter net profit on higher operating income, in line with analyst forecasts.

The lender, majority-owned by Abu Dhabi's ruling family, made a net profit of AED1.19bn ($324 million) for the three months ended September 30, compared with AED1.05bn in the prior-year period, it said in a statement.

Analysts polled by Reuters had estimated on average a profit of AED1.16bn for the period.

"During the third quarter, FGB continued to witness notable growth in its core businesses, confirming its strategy to primarily develop its business based on solid organic growth both domestically and internationally," Andre Sayegh, the chief executive of FGB, said in the statement.

Provisions in third quarter were higher at AED422.6m than AED398.6m a year ago.

Loans and advances grew 10.7 percent versus the end of 2012 to AED126.9bn while customer deposits expanded to AED132.6bn, up 11.1 percent over the same timeframe.

Profit for the first nine months of the year was up 13.2 percent over the same period last year to AED3.4bn.

FGB is one of two banks hired by Abu Dhabi earlier this month to advise on the merger of the two stock exchanges in the United Arab Emirates, sources told Reuters

The lender on Saturday said it raised its stake from 40 percent to 100 percent in an Islamic finance company in the UAE, seeking to expand its sharia-compliant operations globally.

The bank is also looking to buy the retail banking business of Barclays in the UAE, its CEO told Reuters in September.

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