First Gulf Bank Reports 15% Rise In Q2 Net Profit

Abu Dhabi-based First Gulf Bank (FGB) reported a 15 per cent year-on-year rise in second quarter net profit to reach Dhs1.16 billion, with revenue during the period also increasing 13.4 per cent to Dhs2.01 billion.

The bank attributed the revenue rise to its diversification strategy and improved product offering.

Net interest and islamic financing income also grew nine per cent year-on-year to Dhs1.475 billion, while corporate and retail fees and commissions rose 34 per cent.

FGB’s net profit for the first half of the year also rose to Dhs2.21 billion, a 13 per cent hike compared to H1 2012. Its loans portfolio grew seven per cent during the first half of 2013 and 11 per cent over the past 12 months.

The lender is currently focussing on domestic and international expansion though a larger physical presence and via introducing new financial products, said André Sayegh, CEO of FGB.

“Our geographic expansion over the coming quarters remains focused on Asia,” he said in a statement.

During the first half of the year, seven per cent of FGB’s net profit came from international operations, up from five per cent a year earlier.

The bank is also ramping up its local presence: last month, it signed an agreement to acquire Dubai First, the consumer financial services business, from Dubai Financial Group for Dhs601 million in cash.