First Gulf reports 9.4 per cent increase in profits

22 October 2009

Abu Dhabi bank reports increase in profits despite $133m in writedowns

Abu Dhabi’s First Gulf Bank has reported an increase in profits of 9.4 per cent in the third quarter of 2009, with profit during the period reaching AED930m ($253m), from AED850m in the same period of 2008.

The bank said it made total provisions in the third quarter of AED490m. In the next five quarters it expects to make additional provisions of AED174m. The bank has exposure of $104m to Saudi conglomerates Saad Group and Ahmad Hamad al-Gosaibi & Brothers.

Operating income during the quarter was AED4.3bn, an increase of 29 per cent from 2008. Deposits increased by 6.7 per cent to AED89.4bn, while loans rose by 4.6 per cent, bringing the loan to deposit ratio to 101 per cent, from its peak of 110 per cent in March.

Total assets held by the bank increased 16 per cent since 2008 to AED124bn.

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