FGB ex­pects 6pc growth in prof­itabil­ity

The Pak Banker - - FRONT PAGE -

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.

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