FGB third-quarter earnings surge 31%
abu dhabi — FGB said on Wednesday said its group net profit for the January-September 2016 period rose five per cent to Dh4.5 billion despite challenging operating conditions across the globe.
In a statement, the Abu Dhabibased bank said its third-quarter group net profit grew 31 per cent to Dh1.86 billion with revenues up 28 per cent to Dh2.81 billion. Excluding property-related gains, the bank said its third-quarter revenues rose eight per cent, reflecting strong core banking performance.
Highlighting the key balance sheet indicators, the bank said its total assets reached at Dh233.2 billion, loans and advances amounted at Dh156.2 billion, customer deposits hit Dh140.9 billion, and shareholders’ equity amounted to Dh36 billion.
Advances to stable resources ratio stood firm at 90.7 per cent while liquidity coverage ratio stayed above 70 per cent, the bank said, adding that other key ratios well within management guidance with Over the last ninemonth period we have generated a record net profit of Dh4.50 billion Andre Sayegh, net interest margin firm at 3.1 per cent and cost to income ratio stable at 19.9 per cent.
Earnings per share for the ninemonth period ended September 30, 2016 stood at 98 fils compared to 93 fils for the same period in 2015. As a major leading bank in the UAE, the bank said it had shareholder equity of Dh36.0 billion as of September 30, 2016 making it one of the largest equity based banks in the UAE. “We are pleased with our third quarter performance as it highlights once again the resilience of our business model and our ability to generate solid earnings in a volatile global environment,” Andre Sayegh, chief executive officer of FGB, said.
“Over the last nine-month period we have generated a record net profit of Dh4.50 billion, an increase of five per cent from last year in challenging global operating conditions. This outstanding performance was achieved on the back of our strong business model, focus on revenue growth and expense control,” he added.
“Our prudent strategy based on disciplined balance sheet growth, tactical asset allocation and consistent funding optimisation, has enabled us to support revenue generation, stabilise our margins and more importantly improve our asset quality metrics, which demonstrates FGB’s best-in-class risk management policies,” Sayegh said. During the period, the group continued to focus on developing innovative products and services to best fit customer needs. In this context, Dubai First, a subsidiary of the FGB Group, entered into a five-year strategic partnership with Dubai Parks and Resorts, the largest integrated theme park destination in the region.
“Looking towards the future, we remain firmly focused on maintaining a strong balance sheet and healthy ratios. Our objective is to further enhance our solid foundation to support the future growth and prosperity of our business,” Sayegh said.
“As always, we remain committed to creating sustainable value for our shareholders as we prepare to embark on a new chapter in FGB’s success story. While we remain vigilant and risk averse in light of today’s challenging global environment, we are confident that we will successfully meet our financial targets for this year and the years to come,” Sayegh concluded.
— muzaffarrizvi@khaleejtimes.com
CEO of FGB