Difficult conditions in the global bond and equity markets the hit profits of the Manama-based offshore investment bank, United Gulf Bank (UGB), the bank said in a statement released on 19 March. Profits fell by 44 per cent in 1994 to $10.8 million. The board has recommended maintaining the 5 per cent cash dividend that is has previously issued to shareholders.

Total assets increased by 26.3 per cent in 1994 to reach $384.8 million. Investments in managed portfolios are UGB's largest asset class.

They rose by 48 per cent to $139.3 million. However, this section contributed a loss of $1.4 million in 1994, compared with a profit of $13.4 million the previous year.

The main contribution to profits in 1994 came from revenues from direct investments and real estate. Dividend income at $6.9 million was 83 per cent higher. The real estate portfolio generated rental income of $3.7 million, a 62 per cent increase. The gain from realised capital on properties was $2.8 million, six times higher than in 1993, UGB says.

Time deposits, rose to $144.5 million, up from $61.5 million in 1993. Shareholders' equity rose by 0.6 per cent to $221.2 million.