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First Gulf Bank initiates share buy-back |
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Following ESCA approval received on 05 November, First Gulf Bank (FGB) Board of Directors decided to initiate the Share Buyback program for up to 10% of the Bank’s shares issued and traded in the market.
Commenting on the Share Buyback, His Highness Sheikh Hazza Bin Zayed Al Nahyan, Chairman of FGB, said “Due to the global financial turmoil, which has negatively affected the local shares valuation and led to the irrational trading of our shares, the Board of Director has decided to step in to proactively protect our shareholders’ assets. While FGB commands a solid portfolio and our Net Profits grew by 68% from September 2007 to September 2008, the share price declined by more than 40% during the year 2008 due to the adverse market conditions. I hereby confirm that the Board focus remains on providing the maximum value for our shareholders, we therefore decided to initiate the Share Buyback program as we strongly believe in our franchise future performance. Through higher Earning Per Share, the program will reflect over time, into higher value for FGB shareholders.
“FGB is built on solid foundations and over the years the bank has been enjoying consistent growth and delivering solid results,” added Abdulhamid Saeed Managing Director of FGB. “In spite of the recent global financial crisis, we operate in a fundamentally solid economic environment, Abu Dhabi will continue to expand and grow as per its long term strategy for 2030. FGB is pleased to constitute part of this growth”.
In line with the Board’s vision and strategy, FGB has maintained its position as a well diversified financial institution and has been growing and delivering impressive results quarter after quarter.
“At FGB, we have always focused on diversifying our sources of income. This has reflected on the bank’s financial performance, delivering solid financial ratios, making it one of the most profitable and efficient banks in the UAE, with Return On Average Equity at 23%, Return On Average Assets at 3.5%, Cost To Income Ratio at 21%” added Saeed.
Through its strong Corporate and Retail businesses, FGB has built a high quality loan portfolio, translating in a very low Non Performing Loan to Gross Loans Ratio of only 0.6%. The prudent lending strategy is backed by a conservative provisioning policy reflecting a Provision Coverage Ratio in excess of 200%. The investment portfolio was not impacted by the global turmoil and the sub-prime crisis. The Liquidity and capital adequacy ratios are at comfortable levels allowing a share buyback program.
“FGB is well positioned to continue with its planned growth and consistent performance. We will continue to focus on maximizing profit for our shareholders.” concluded Saeed. |
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