JEDDAH, 7 November — United Gulf Bank’s (UGB) net income for the first nine months of 2002 was $9.4 million compared to $4.05 million for the full year ended 2001 and a loss of $0.87 million in the same period last year, according to a statement from the bank.
UGB is the investment banking arm and subsidiary of Kuwait Projects Company (Holding) KSC, Kuwait (KPCH). The bank, whose assets total about $900 million and shareholders’ funds in excess of $200 million, announced $2.1 million as its net income for the third quarter. Its operating income increased 50 percent to $39.2 million in the period up to Sept. 2002 compared to $26.2 million in the same period of 2001. Total assets of $875 million as at the end of September were adequately supported by shareholders’ equity of $207 million. The liability structure of the bank was also strengthened by a two-year certificate of deposit facility.
"This positive performance continues to be made possible by a strong contribution from the bank’s consolidated subsidiaries Kipco Asset Management Company and Tunis International Bank as well as from its associated companies Jordan Kuwait Bank, United Realty Company, United Industries Company, Baltic Transit Bank and Gulf Egypt for Hotels and Tourism," the statement said. "The nine months also saw a healthy return from the bank’s Kuwaiti portfolio, a real estate investment in the United States as well as a number of international fund investments which compensated for the continued weak performance from European and US equities," the bank stated.
Commenting on the results, the bank’s Chief Executive William Khouri said: "Our achievements to date stand out in what is proving to be a very difficult year for the global banking industry and as regional events and international capital market returns continue to weigh on the performance of the GCC investment banking sector.