UAE's First Gulf Bank Q2 profit up 14%

A 6 percent rise in Q2 lending offset 20 percent rise in costs for first six months
UAE's First Gulf Bank Q2 profit up 14%
By Shane McGinley
Tue 24 Jul 2012 03:29 PM

First Gulf Bank (FGB), the UAE’s second-largest lender, reported a 14 percent year-on-year rise in second quarter net profit, it was announced on Tuesday.

The lender, which is part-owned by Abu Dhabi's ruling family, made a net profit of AED1.017bn (US$276m) between April and June 2012, compared with AED890m in the same period the year before.

FGB said the growth was a result of a six percent rise in lending during the quarter, compared to a flat performance in the first quarter of the year. Lending across the whole of the UAE rose by just 0.3 percent in the first five months of the year, according to UAE Central Bank data.

The improved performance in the second quarter meant profit for the first half of the year was up 11 percent to AED1.95bn.

Analysts polled by Reuters had estimated FCG’s profit of would be around AED950.1m for the quarter.

The growth in profit was despite increased costs, which rose to AED667m for the first half of 2012, a rise of 20 percent compared to the first half of 2011.

“As the UAE economy continues to pick up momentum, as we witness more favourable market conditions, FGB is committed to uphold its leading position in the local and regional markets alike,” FGB’s CEO Andre Sayegh said.

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