Bloomberg News

First Gulf Third-Quarter Profit Climbs 8%, Beats Estimates

October 24, 2011

(Updates with CEO comment in fourth paragraph.)

Oct. 24 (Bloomberg) -- First Gulf Bank PJSC, the United Arab Emirates lender controlled by Abu Dhabi’s ruling family, reported an 8 percent rise in third-quarter profit, beating analysts’ estimates.

Net income advanced to 920 million dirhams ($250 million) from 848 million dirhams, a year earlier, the bank said in an e- mailed statement today. The median estimate of three analysts was for a profit of 806 million dirhams, according to data compiled by Bloomberg. Net interest income climbed 27 percent to 1.36 billion dirhams.

U.A.E. banks are recovering from the credit crisis, which slowed lending, hurt investment banking and led to rising loan defaults. National Bank of Abu Dhabi PJSC, the U.A.E.’s second- biggest bank by assets, posted a 12 percent increase in third- quarter profit.

FGB’s results “can be attributed to our cautious yet diverse approach to the financial and business markets,” Chief Executive Officer Andre Sayegh said in the statement.

Provisions and impairments fell 7 percent to 379.3 million dirhams, while non-performing loans as a percentage of gross loans dropped 3.4 percent from 3.7 percent in December, the bank said. Loans and advances rose 7 percent to 102 billion dirhams from 95.6 billion dirhams in December, while deposits fell 3 percent to 96 billion dirhams.

--Editors: Inal Ersan, Claudia Maedler

To contact the reporter on this story: Stefania Bianchi in Dubai at sbianchi10@bloomberg.net

To contact the editor responsible for this story: Edward Evans at eevans3@bloomberg.net


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