International rating agency Capital Intelligence has upgraded First Gulf Bank (FGB) to investment grade rating (BBB-) in domestic strength and foreign currency long term. The report concluded a stable outlook for the bank, highlighting its strength in its management team and in laying down strategies for growing the balance sheet and diversifying revenue sources.
The rating agency also mentioned the strong internal controls and systems embedded in the bank as well as the quality of people hired at all management levels. The report pointed out the good quality of the loan portfolio, which has improved strongly over the last three years.
The bank experienced a strong steady growth in income and revenues in 2000 and 2001, with profits growing from 50 million Emirati dirhams ($13.6 million) to Dh62 million. It has taken different initiatives focusing on income diversification and ensuring continuous controls in its operation. Furthermore, the bank has taken a step forward with its listing in the Abu Dhabi Securities Market ensuring consistent quarterly financial reporting to its shareholders.
On first half of 2002 performance, the bank has reported a net income of Dh36.8 million, 47 percent higher than the same period last year. FGB has diversified its income and revenue source. Investment income increased from two million Dh to Dh20 million in the first half of the year.
The Capital Intelligence report concluded that the bank is well on track and is expected to perform well in 2002 due to growth in non-interest revenues as well as the launch of many products and services that will further diversify the revenue stream. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
