Manama : United Gulf Bank, the asset management and investment banking platform of the Kipco Group, said net profit increased 114 per cent to $31.8 million in the first half of the year compared to $14.9 million in the same period last year.

Total income up 10 per cent to $72.6 million from the previous period's $65.9 million. Operating income grew 50 per cent to $28.9 million from $19.2 million. Earnings per share stood at 3.88 cents.

"The period saw the culmination of our strategy to focus UGB on its core areas of expertise: asset management and investment banking. We have now completed the transfer of UGB's four commercial banking assets to our sister company, Burgan Bank, following the sale of our stake in Tunis International Bank in June," said chairman Masaud Hayat.

"Although global and regional markets continue to be volatile and will likely remain the case for at least the medium term, we believe our conservative management of our business, combined with its strategic realignment as Kipco's asset management and investment banking business, will enable us to capture the value that the region's markets offer," he said.

Total assets decreased to $1.8 billion from $2.5 billion in the first half of 2009, mainly reflecting the disposal of UGB's stake in Tunis International. UGB has a capital adequacy ratio of 18 per cent, above the Central Bank of Bahrain's minimum level of 12.5 per cent.

Assets under management were $7.1 billion as at 30 June 2010, compared to $8.5 billion for the first six months of 2009, reflecting the continuing challenging environment for global and regional financial markets. On a quarterly basis, assets under management remained flat, with $7.2 billion recorded as at 31 March 2010.

FEB

Boost in net

First Energy Bank (FEB) announced yesterday a net profit of $6 million for the first half of 2010, an increase over the $5.6 million achieved during the same period last year. FEB also reported achieving a gross income of $18.1 million in the first half, registering a boost over last year's $16.6 million for the same period, with total assets of $1.21 billion of which 51 per cent of assets were liquid.

Essam Yousuf Janahi, chairman, said, "We are extremely happy with our first half results."