UGB profit drops

Manama

United Gulf Bank B.S.C. (UGB), the merchant-banking subsidiary of KIPCO Group, yesterday reported a decline in its first quarter net profit attributable to shareholders of parent for 2015, negatively impacted by  the absence of a substantial one-time gain recorded in the prior year quarter. 

UGB’s net profit attributable to shareholders of parent was US$2.1 million for the first quarter, down compared to US$10.2m recorded in the same period a year ago.   

In the first quarter of 2014, the company recorded a step-up acquisition gain of US$9m at a subsidiary, which was absent in the first quarter of 2015.

Net profit for the first three months was US$0.2m, down compared to US$11.6m recorded in the year earlier quarter. Basic earnings per share was 0.26 cents, compared to 1.25 cents in the first quarter of 2014. 

UGB’s total income before interest and other expenses also decreased to US$35.2m from US$40.5m at March 31, 2014.

Total assets marginally decreased to US$2.6 billion from US$2.8bn at December 31, 2014. Total equity was down at US$537.8m, when compared to US$580.4m in the prior year period, due to a negative movement of fair value and foreign exchange reserves. 

Commenting on the results, Rabih Soukarieh, Chief Executive Officer of UGB, said: “Our recurring Income has increased for the quarter compared to same period in 2014. We remain confident of our future profitability that is for the most part driven by a predictable and recurring revenue stream.”