FGB expects 6pc growth in profitability
Abu Dhabi-based First Gulf Bank (FGB) said it expected to be able to maintain its profit growth of 6 per cent in 2016 despite challenges due to lower oil prices and a tougher macroeconomic environment.
"I think it's possible to maintain profitability because during the previous years, there was a squeeze on the net interest margins. I think during 2016, you will probably see more reasonable net interest margin levels, so you can probably generate more without necessarily increasing your balance sheet by the same size," said Andre Sayegh, chief executive officer of FGB.
In 2015, FGB recorded a net profit of Dh6.01 billion, marking a 6 per cent increase from the Dh5.66 billion recorded in 2014. Sayegh added that the best estimate for growth in 2016 in loans, revenues, and in the bottom line was in the low single digits. The CEO said that the bank may try to raise capital this year through the markets, having already used $2.7 billion (Dh9.9 billion) of its $5 billion EMTN (euro Medium Term Note) programme.
"We've already said that every year we will need, based on our growth and the growth of our balance sheet, $1.5 billion to $2 billion.