18 October 2006
Immediate Release
UGB Achieves Record Nine month 2006 Profits of US$ 71.1 Million
Bahrain, 18Oct 2006 -- United Gulf Bank B.S.C. – Bahrain (UGB), has announced net profit of US$
25.7 million attributable to shareholders of the Bank for the third quarter of 2006. This represents a
41 percent increase over the US$ 18.2 million net profit earned during the same period last year. Nine
months net profits attributable to shareholders of the Bank reached a historic record US$ 71.1 million, or
US 9 cents per share compared to US$ 50.7 million in the nine months of last year, an increase of 40
percent.
Commenting on the performance, UGB Chief Executive, William Khouri, said, “We are gratified by
these results which compare most favorably to our peer group’s performance. We are very confident of
achieving yet another year of exceptional performance as our strongest quarter is yet to come. The
diversity and quality of UGB’s assets continue to ensure stability of growth in recurring profits.
UGB has just completed a 10 year US$ 100 million LT2 issue. During the roadshow, the Bank’s credit
and business model was well received by international investors paving the way for future debt issues.
Proceeds of the subordinated issue will be used to balance and stretch funding sources as well as to
invest in expanding UGB’s universal banking network which now extends to 11 countries and includes
asset management/investment banking businesses in Kuwait, Bahrain, Qatar and soon Tunisia and the
UAE, as well as commercial banking in Jordan, Tunisia, Algeria, Iraq and soon Syria.”
UGB’s total consolidated revenue of US$ 167.6 million in the first nine months of 2006 increased by 36
percent over the US$ 123.5 million recorded in the same period last year. Contributing to this record
revenue was investment income of US$ 57.1 million including proceeds from the exit of Phoenicia
Hotel in Dubai, fees and commissions of US$ 43.9 million and share in profit of associated companies
of US$ 39.6 million. Total consolidated assets at 30 September 2006 were in excess of US$ 2 billion,
supported by total consolidated equity of US$ 516.1 million. The excess of market value over carrying
cost of UGB’s investments in publicly quoted subsidiaries and affiliates now stands over US$ 336.5
million.
UGB, the investment banking subsidiary of Kuwait Projects Company (Holding) (KIPCO), manages a
regional network of investment/asset management companies and commercial banks. Its proprietary
investments include assets in real estate, telecommunications, private equity, structured products and
quoted securities. Assets under management exceed US$ 6.3 billion. UGB’s core subsidiaries and
associates include: Algeria Gulf Bank, Al-Dhiyafa Investment Company, Bank of Baghdad, Jordan
Kuwait Bank, KIPCO Asset Management Company (KAMCO), Manafae Investment Company, Tunis
International Bank, United Gulf Bank Securities Company, United Cable Company, United Industries
1
Company, United Real Estate Company, United Medical Services Company, United Gulf Financial
Services Company, Syria Gulf Bank (under formation) and United Warehousing & Cooling. UGB and
its subsidiary KAMCO have a proven track record of successful investment banking activities including
corporate finance advisory, new issue placement and underwriting, mergers and acquisitions, bond
issuance and investment product structuring and placement.
UGB has a long term investment grade rating by Moody’s (Baa3) and Capital Intelligence (BBB+).
KIPCO is an US$ 18 billion enterprise with major activities in financial services, media and
telecommunications and a variety of other business sectors across the Middle East and North Africa. The
group has substantial ownership interests in a portfolio of some 73 companies operating throughout the
region and internationally.
- ends -
For Further Information:
United Gulf Bank, Bahrain
+973 17 533233
2
www.ugbbah.com