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UGB net profit $43.3 million

DUBAI - United Gulf Bank (UGB), has recorded a net profit of $ 43.3 million in 2004, against $ 36.2 million recorded in 2003, indicating an increase of 19.6 per cent, said Masaud Hayat, UGB managing director and KIPCO Asset Management Company (KAMCO) chairman.

The board of directors has recommended to its Annual General Meeting of shareholders a dividend of $ 28.65 million in cash, representing 15 per cent of the share value. United Gulf Bank's return on average equity was 16 per cent at year-end.

UGB's balance sheet grew a further $ 200 million to reach $ 1.38 billion, largely as a result of investments in Wataniya Telecom Algerie, structured investments, US equity funds and capital increases in certain core investments. The balance sheet is supported by a capital base of $ 279.7 million.

United Gulf Bank's ratio of liquid assets to the balance sheet total stood at 29 per cent. Capital adequacy in the form of the BIS ratio was 17.7 per cent at year-end.

In recognition of this financial strength, United Gulf Bank's long-term rating was raised by Capital Intelligence to BBB from BBB - in September 2004.

Hayat said: "In its Silver Jubilee year, UGB has produced a second year of historic results and is in a very healthy financial position.''