First Gulf Bank profit increases

First Gulf Bank increased its net profit for 2004 to Dh244.9 million, the bank announced yesterday.

"The net profit in 2004 reached Dh244.9 million, compared to Dh120.9 million in 2003, with growth achieved across the board.

The annual general meeting will be held on February 15, where the final dividends payable will be decided. It will reflect the profitability of the bank and our share price in the market," said Chief Executive Abdulhamid Saeed.

The bank declared a 10 per cent cash dividend last year.

"We expect better growth this year, and in the coming years, as the UAE economy is booming. The banking sector will also [play its part] in the country's economic growth. FGB's performance will exceed expectations," he said.

To mark the bank's 25th anniversary this year, Saeed unveiled a special celebratory 25-year logo. Total assets increased by 77 per cent to Dh12.8 billion in 2004. Customer deposits jumped 70 per cent to Dh10 billion.

Shareholders equity increased to Dh1.78 billion from Dh780 million the previous year, a jump of 128 per cent.

"This was due to the Dh800 million five-year convertible bond issued by the bank last year to our strategic partners. The issuance of bonds doubling the equity was part of the bank's strategy to expand its business and operation in the coming years," Saeed said.

The bank's return on capital ratio rose to 62.9 per cent from 31 per cent in 2003. The return on average equity ratio rose to 19.1 per cent, from 16.7 per cent.

The return on average assets stood at 2.45 per cent, compared to 1.98 per cent the previous year. The bank's loan deposit ratio stands at 65 per cent.

Earnings per share (EPS) increase to Dh0.61 in 2004 from Dh0.31 in 2003.