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First Gulf half-yearly net profit falls

|By Arabian Post Staff| First Gulf Bank reported a lower Group net profit for the first half of this year, recording AED 2.64 billion for the six-month period ended 30 June 2016, compared to AED 2.87 billion for the first half of 2015

FGB, one of the leading banks in the UAE, reported second quarter 2016 Group revenue growth of 3%, while Q2’2016 net profits were recorded at AED 1.31 Billion compared to AED 1.33 Billion for the previous quarter. Earnings per share for the first half of 2016 stood at 58 fils against 62 fils in the first half of 2015.

André Sayegh, CEO,  described the results as a good performance amidst global operating challenges, demonstrating the fundamental strength of the bank’s business model. These results were achieved on the back of an enhanced model across  businesses, geared to support higher profitability in the medium to long term, and create sustainable value for our shareholders, he said.

He said that the bank has set three key priorities for 2016 which include successfully navigating current operating conditions while positioning the bank well for future growth. These focus areas include: prudent lending through selective origination, ensuring adequate liquidity, and maintaining disciplined resources allocation. Measures taken to deliver on these priorities allowed the bank to protect  returns, reduce  funding costs sequentially and attract more deposits from  international locations, as well as sustain industry-leading operating efficiency, the CEO pointed out.

 

During the period, FGB’s credit ratings were affirmed at A2/A/A+ by Moody’s/S&P/Fitch. In addition, Moody’s changed FGB’s long term rating outlook from ‘stable’ to ‘positive’.  This rating action followed the official public announcement on July 03, 2016 that FGB and National Bank of Abu Dhabi (NBAD) have entered into a merger agreement.