Profit up at EBG, but dip at the Bank of Kuwait and the Middle East
The Emirates Bank Group has announced that its profits for the first half of 2000 reached $69.64 million, an increase of 75 percent relative to net profits during the same period last year. The bank's earnings per share for the first six months of 2000 stood at $0.23 up from $0.14 in the first half of 1999.
Growth in EBG’s total assets was attributed to property rental receivables that reached $48 million at the end of June 2000 relative, up from zero during the first half of 1999. Total assets rose to $6.21 billion, compared with $5.6 billion in corresponding period of 1999.
The growth in profits was also due to lower provisions for losses on advances that fell by more than $14.2 million. Provisions for investments, however, rose from $68 thousand to $1.45 million. Another contributing factor to the rise in profits was higher interest income, which rose from $180.83 million to $215.66 million, in addition to higher fees and commissions.
Total income increased by 21 percent, from $180.13 million to $130.91 million. Net profit before tax rose to $73.39 million compared to $41.23 million in the corresponding period of the 1999.
On the other hand, The Bank of Kuwait and the Middle East announced that its net profits fell 3.7 percent lower $22.88 million in the first half of 2000, when compared to the corresponding period in 1999. Operational profits, however, rose 12 percent to $28.23 million, and shareholders' equity dropped nearly 1 percentage point, from 11.58 percent at the end of June 1999 to 10.7 percent during the same period last year.
© 2000 Mena Report (www.menareport.com)