First Gulf Bank reports 8% profit increase

28/10/2010 - Dubai Investment News
First Gulf Bank reports 8% profit increase

Posted by Bob Brunskill

UAE-based First Gulf Bank (FGB) has reported a net profit of AED 849 million for the third quarter of 2010, amounting to an eight per cent quarter-on-quarter increase.

The company also stated that its net profit for the first nine months of the year stood at AED 2.6 million, or a four per cent rise on the same period in 2009.

Commenting on the results, the bank said it had continued to focus on prudent and efficient management of its balance sheet, as reflected in strong financial ratios.

These included a cost to income ratio of 17.2 per cent, a net interest margin of 3.6 per cent and a capital adequacy ratio of 23.4 per cent.

"We are very proud to state, that this combination of ratios is unmatched in the UAE banking industry," said Andre Sayegh, FGB chief executive officer.

"FGB is in a very strong financial position and will maintain its primary objective of maximizing value for all its stakeholders."

Earlier this week, Rashed Al Baloushi, director of operations at the Abu Dhabi Securities Exchange, suggested that about $40 billion of new foreign investments will flow into the UAE following a rating upgrade by the global stock market index MSCI.