Dubai: First Gulf Bank (FGB) on Monday reported third quarter net profit at Dh1.19 billion, up 12.8 per cent compared to Dh1.05 billion in the same period last year.
The bank’s operating income increased by 13.3 per cent to Dh2.05 billion. Net interest and Islamic financing income stood at Dh1.52 billion in the third quarter of 2013, up 8.6 per cent year-on-year as the net interest margins improved to 3.68 per cent, from 3.62 per cent as of June-end 2013 and 3.58 per cent in March 2013.
“During the third quarter, FGB continued to witness notable growth in its core businesses, confirming its strategy to primarily develop its business based on solid organic growth.
“This, complemented with effective balance sheet management and risk mitigation allowed FGB to continue delivering robust performance,” said André Sayegh, CEO of FGB.
At the close of the third quarter, FGB’s total assets increased to Dh189.6 billion, up by 8.3 per cent compared with Dh175 billion at year-end 2012. Customer deposits expanded to Dh132.6 billion, up 7 per cent compared to the previous quarter and 11.1 per cent higher than year-end 2012.
The bank’s loans and advances grew by 3.1 per cent during the quarter to Dh126.9 billion. This translated into a 10.7 per cent year to date growth.
FGB reported a net profit of Dh3.4 billion for the first nine months of 2013, 13.2 per cent higher than Dh3 billion reported during the same period last year.
“Currently, the bank is undergoing key changes as part of our organic growth strategy. Not only are we going to reinforce our global presence, with a focus on Asia, but we are also enhancing our operations in our existing divisions and groups,” said Abdul Hamid Saeed, FGB Managing Director and Board Member of FGB.
FGB recently increased its stakes in Aseel Islamic Finance from 40 per cent to 100 per cent.
FGB’s non-performing loans (NPL) ratio was 3.9 per cent as of September-end 2013, compared with 3.6 per cent in the previous quarter.
“We are satisfied with the asset quality metrics displayed as of September 2013. We have maintained our NPL ratio within our guidance of 3 to 4 per cent”, said Sayegh.
*This article was published by Gulf News. Read the original article here.