The First Gulf Bank PJSC, (FGB) has released its Q2 2013 financial results, confirming it's upwards growth trajectory.
The Bank recorded a net profit of AED1,167 million in Q2, representing an increase of 15% compared to the same period in 2012. During the first half of 2013, the Bank has recorded a 13% increase in net profits at AED 2,213 million, compared to the same period last year.
FGB achieved record revenues of AED2,018 million in Q2 thanks to its revenue diversification strategy in term of geographies, locally and internationally, as well as by enhancing its products on offer. The positive results were reflected in the loans portfolio which grew by 7% during the first half of 2013 and by 11% over the past 12 months.
2013 is proving a good year for FGB. Last month, the Bank signed an agreement to acquire Dubai First, the consumer financial services business, from Dubai Financial Group LLC for AED601 million in cash. This acquisition supports FGB's strategy to enhance its services and expand its UAE customer base.
Earlier in 2013, FGB was recognised for the second consecutive year as the "Best Local Bank in the United Arab Emirates" for 2012 by EMEA Finance, as well as winning "Best Bank in the United Arab Emirates" and "Best Bancassurance" titles at The Banker Middle East Industry Awards 2013. FGB has also recently been ranked as the 3rd most powerful company in the UAE and 6th leading bank in Forbes' "Top 500 in the Arab World" list.
Furthermore, so far in 2013, rating agencies have raised FGB's status. Fitch Ratings upgraded the Viability Rating (VR) from 'bbb-' to 'bbb', Capital Intelligence upgraded the bank's long term rating from 'A' to 'A+' while Moody's Investors Service upgraded FGB's standalone bank financial strength rating (BFSR) from 'D+' to 'C-'.
Commenting on FGB's outstanding performance, Andre Sayegh, CEO of FGB, said, "We are driving our business forward based on a foundation we call the "Three S's" - building Specialisation, Synergy and Speed. We are embedding this new culture across our organisation in order to support deeper domestic and international expansion though a larger physical presence and more customer focus, as well as by introducing new financial products. Our geographic expansion over the coming quarters remains focused on Asia." He added, "The first half of 2013 has delivered more compelling proof that we have the right business strategy in place and that our team is delivering on it. Emiratisation remains unwavering and we have firm plans in place to help us to continue playing a supporting role in the development of the UAE's human capital. Due to the strong sovereign fundamentals, we are positive about the second half of 2013 and beyond." Abdulhamid Saeed, FGB Managing Director and Board Member, commented, "First Gulf Bank's strategy has always been based around two core principles: providing the best service to our customers and providing the best returns to our shareholders. We do this via understanding market needs and responding accordingly with innovative products and services in the right place at the right time. This single-minded purpose is enabling us to maintain, and indeed build on, our long-held position as one of the top financial partners of choice in the communities in which we operate. FGB remains fully committed to playing its role in the development of the UAE's fast growing economy and in helping to build the financial foundations necessary for prosperity across the different identified key sectors."