First Gulf Bank approves 83pc cash dividend

First Gulf Bank (FGB)’s Board on Thursday approved a cash dividend of 83 per cent of the capital amidst innovative products and services introduced by the bank, said Abdul Hamid Saeed, FGB’s Managing Director.

“Following our 2012 financial performance, we are pleased to announce the cash dividend of 83 per cent, far exceeding the rates announced by our competitors and setting FGB’s dividends as the highest amongst UAE banks,” said Saeed.

He added that the amount of dividend will amount to Dh2.5 billion, representing a 67 per cent increase year on year. Saeed added: “2012 was a highly successful year for our bank, in which net profits exceeded Dh 4.1 billion positioning FGB among the best performers of the Middle East region. Furthermore, revenues for Q4 of 2012 were Dh2 billion, the strongest quarterly revenue numbers ever recorded by the bank.” Saeed added that the bank reported a net profit of Dh4.1 billion in 2012, 12 per cent higher than 2011 with positive growth in both net profit and assets for the 12th consecutive years since 2000.

Saeed said that bank’s assets in 2012 grew to Dh175 billion compared to Dh157.5 billion in 2011. a 11 per cent increase, and loans increased to Dh114.6 billion in 2012, compared to Dh104.7 billion in 2011, up by 9 per cent. “Our assets increased since 2000 by 43 per cent, deposits by 42 per cent, loans by 44 per cent, equities by 40 per cent and net profit by 44 per cent,” Saeed pointed out. “The net profit of core banking activities against other subsidiaries of the group was split at 95 per cent to 5 per cent, in which the UAE businesses contributed 96 per cent compared to 4 per cent overseas,” Saeed explained.

He added that revenue increased by Dh787 million and capital adequacy at 21.3 per cent, and the controlled cost to income ratio.