FGB net earnings reach AED1.31 billion in second quarter

Abu Dhabi / WAM

The First Gulf Bank (FGB) reported second quarter 2016 Group revenue growth of 3%, while Q2’ 2016 net profits were recorded at AED 1.31 billion compared to AED 1.33 billion for the previous quarter.
FGB reported a group net profit of AED 2.64 billion for the six-month period ended 30th June 2016, compared to AED 2.87 billion for the first half of 2015. Earnings per share for the first half of 2016 stood at 58 fils against 62 fils in the first half of 2015.
Commenting on the results, Andre Sayegh, CEO of FGB, said: “During the second quarter, we generated a net profit of AED 1.31 billion, a good performance amidst global operating challenges, demonstrating the fundamental strength of our business model. These results were achieved on the back of an enhanced model across our businesses, geared to support higher profitability in the medium to long term, and create sustainable value for our shareholders.

In line with our strategy to preserve a strong balance sheet and solid ratios, the three key priorities we are focusing on in 2016 are enabling us to successfully navigate current operating conditions while positioning us well for future growth. These focus areas include: prudent lending through selective origination, ensuring adequate liquidity, and maintaining disciplined resources allocation. Measures taken to deliver on these priorities allowed us to protect our returns, reduce our funding costs sequentially and attract more deposits from our international locations, as well as sustain industry-leading operating efficiency.”

Sayegh added: “Our quick and determined action to adapt to new operating conditions was accompanied by our relentless focus on increasing penetration and gaining market share in key product lines at home and also across our international locations where we saw positive momentum. As a result, we are ending the period with a solid foundation and an enhanced capacity to generate healthy and balanced revenues across core business lines in a sustainable manner; as proven by the revenue increase achieved during the second quarter.”
During the period, FGB’s credit ratings were affirmed at A2/A/A+ by Moody’s/S&P/Fitch. In addition, Moody’s changed FGB’s long term rating outlook from ‘stable’ to ‘positive’. This rating action followed the official public announcement on July 03, 2016 that FGB and National Bank of Abu Dhabi (NBAD) have entered into a merger agreement.