United Gulf Bank (UGB), a Bahrain-based offshore bank, has reported a strong performance for the first half of this year with net profits rising to $5.22 million from $0.18 million in January-June 1995.

A UGB spokesman said the increase was not unexpected and reflected the fact that the mid-year result for 1995 was unusually poor as a result of losses on foreign exchange trading.

The bank, which has since tightened position limits for its foreign exchange traders, reported an increase in net profit in 1995 after liquidating assets in real estate, managed funds and securities which had appreciated in value.

The banks assets were much lower in mid-1996 at $355.5 million compared with $440 million last year. UGB is 97 per cent owned by Kuwait Investment Projects Company.