Dubai

First Gulf Bank (FGB) said on Tuesday its net profit in 2016 rose marginally by 0.3 per cent, marking its 17th consecutive year of consistent growth in profitability despite challenging conditions.

FGB’s net profit came in at Dh6.03 billion in 2016, compared to Dh6.01 billion in 2015. Full year revenues came in at Dh9.58 billion, up 2 per cent year-on-year, the bank said in an emailed statement.

“Our strong set of results is testament to the success of the strategic actions we have implemented in order to navigate volatile global operating conditions,” said André Sayegh, chief executive officer of FGB in a statement.

FGB’s board recommended the distribution of a cash dividend of 100 per cent or Dh1 per share for the financial year ended December 31, 2016, implying total cash dividend of Dh4.5 Billion, similar to 2015.

The recommended dividend proposal is subject to shareholders approval on February 28.

The bank’s total assets were at Dh245.1 billion, while loans and advances came in at Dh156.7 billion and customer deposits at Dh149.2 billion.

In the fourth quarter to December, net income fell 11 per cent to Dh1.53 billion. Net interest and financing income fell 1 per cent to be at Dh1.641 billion.

Confident

The results for the fourth quarter of 2016 are the last ones the bank will release as an individual entity before it merges with National Bank of Abu Dhabi in the first quarter of 2017. The merger will create the largest bank in the Middle East and North Africa, with Dh642 billion in total assets.

“We are fully confident that the UAE and its active banking sector will continue to lead economic growth and build business momentum in the years to come,” Sayegh said.

On the merger with National Bank of Abu Dhabi (NBAD), the bank has received regulatory consent from the Central Bank of the UAE, further approvals from international regulators and the Securities & Commodities Authority (SCA) are required before the banks are legally combined into a single entity.

Upon the effective date of the merger, assets and liabilities of FGB will be automatically vested in NBAD in consideration for the issue of shares in the new NBAD entity to existing FGB shareholders. In addition, all FGB shares will be de-listed from the Abu Dhabi Securities Exchange.

“With exciting changes just around the corner, we are looking towards the future with clear optimism, fully confident that the best chapter of our story is yet to come,” Sayegh added.