First Gulf Bank reports 8 per cent rise in profit

31 January 2012

Rising financing income boosts net profit

Abu Dhabi-based First Gulf Bank has reported profits for 2011 of AED3.7bn ($1bn), an 8 per cent increase on 2010, driven by a 19 per cent increase in financing income.

Deposits at the bank rose by 5 per cent to AED103.5bn, putting the loan-to-deposit ratio at 101 per cent. The bank said that the loans to stable deposits ratio was 84.5 per cent, well below the Central Bank of the UAE’s regulatory figure of 100 per cent.

Non performing loans fell slightly, from 3.7 per cent of gross loans to 3.4 per cent, excluding the company’s exposure to Dubai World and Dubai Holding.

Total assets at the bank rose from AED140.8bn at the end of 2010 to AED157.5bn at the end of 2011.

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