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Mon 22 Oct 2012 04:21 PM

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UAE's First Gulf Bank Q3 profit rises 15%

Gulf state's second largest lender sees profit increase to US$287m in quarter

UAE's First Gulf Bank Q3 profit rises 15%
First Gulf Bank helped mainly by higher income at its core businesses.

First Gulf Bank, UAE's second largest lender by market value, posted a 15 percent rise in third-quarter profit, helped mainly by higher income at its core businesses.

The lender, majority-owned by Abu Dhabi's ruling family, made a net profit of AED1.05bn (US$287m) for the three month period ending September 30, compared with AED920.35m in the prior-year period, a bank statement said.

Analysts polled by Reuters had estimated an average profit of AED1.02bn for the third quarter.

Profit for the first nine months of the year grew 12 percent over the same period last year to AED3.0bn, FGB said.

Net interest and Islamic financing income grew to AED1.40bn in the third quarter, up 4 percent over the prior year period.

Provisions for impairments, the money set aside to meet future loan losses, increased 5 percent in the third quarter to AED398.6m. Total provisions in the nine month period stood at AED1.22bn, down 2 percent compared with the same period last year.

FGB's loan book grew 9 percent ending September to AED114.4bn compared with AED104.7bn in December 2011, while deposits grew 6 percent to AED109.8bn in the same period.

Earlier this month, FGB sold US$650m in five-year bonds, becoming the first major Gulf borrower to issue since the traditional summer lull, taking advantage of healthy investor demand for regional debt.

FGB shares closed up 0.1 percent on the Abu Dhabi bourse before the results. They are up 29 percent year-to-date.