FGB's shares jumped 9.9 percent to their highest finish since Aug. 1 after the bank reported an 18 percent increase in fourth-quarter profit.

"The strength of FGB's numbers was due to net interest income - this was a good set of numbers ahead of expectations although not dramatically so," said Raj Madha, Rasmala MENA banking analyst.   

"In Q3, FGB's net interest income was extremely strong and that continued in Q4." 

The lender had loan growth of 2.7 percent in the fourth quarter, while rival lender Abu Dhabi Commercial Bank's loan growth was flat over the same period, which may mean FGB took market share from its rival, said Madha.  

"If bank results are good, it does imply that cash flow is improving, but the amount of non-performing loans and write-offs at FGB and ADCB suggests there are plenty of loan quality issues still out there."  

ADCB, which said last week earnings rose 39 percent, added 0.7 percent.

Abu Dhabi's index rose 1.3 percent to 2,454 points — its highest close since Dec. 12.    

Saudi Arabia's Tadawul All-Share Index (TASI) climbed 1 percent to 6,626 points — a new six-month high as calm global markets spurred local investors to focus on a bullish domestic economic outlook.

Saudi Basic Industries Corp. (SABIC) climbed 1.1 percent and telecoms firm Etihad Etisalat rose 2.6 percent.  

"There's not a lot in terms of corporate news ... but the market is making a gradual increase supported by increased volumes from institutions and professional investors," said Hesham Tuffaha of Bakheet Investment Group.  

"There isn't a lot of bad news on global markets and if this continues Saudi investors will concentrate on local fundamentals, which are positive." 

The Saudi economy is forecast to grow 4 percent in 2012 and 6.7 percent last year, according to a Reuters poll.

Dubai's DP World slipped 0.2 percent, up from 2 percent intraday, after the ports operator said 2011 core earnings would be "in line"  with expectations.

"DP World's numbers were actually very good and it showed a robust performance for 2011," said Redwan Ahmed, an analyst at EFG Hermes. "The key thing to watch out for is consolidated units and excluding Australia DP World had an 8 percent rise in like-for-like unit volumes."   

UAE volumes rose 16 percent in the fourth quarter of 2011 compared to the year-earlier period, Ahmed said.   

"The fourth-quarter of 2010 was particularly good so to improve by this margin is very impressive," he said.    

In December 2010, DP World sold a 75 percent stake in its Australian port operations for $1.5 billion. 

"Everybody has been talking about uncertainties over the global economy and difficult markets, but DP World is largely exposed to Asia, Africa and the Middle East where inter-regional trade continues to grow," added Ahmed.  

"Also, container volumes in Western markets have also been flat year-on-year despite tough conditions."