First Gulf Bank Q3 profit down

DUBAI: Abu Dhabi-based First Gulf Bank posted a 9.0 per cent drop in net profits for the third quarter on Thursday as it announced allocating new provisions for bad debts. The bank said its net earnings fell to 849 million dirhams (231.3 million dollars) for the quarter ending September 30, compared to 930 million dirhams in the corresponding period last year.

Revenues for the core banking operation were up 3.0 per cent in the third quarter to 1.52 billion dirhams, but total revenues for the group as a whole, including its property arm and overseas operation, dropped 8.0 per cent to 1.55 billion dirhams.
Revenues from subsidiaries and associates fell 86 per cent to 31 million dirhams in the third quarter, putting pressure on the bank’s overall profit.
The financial statement to the Abu Dhabi Securities Exchange said that the profit of the bank, excluding subsidiaries and associates, had effectively increased 15 per cent to 821 million dirhams in the third quarter.
The statement revealed that the bank has provisioned 406 million dirhams for doubtful debts and impairments, compared to 510 million dirhams in the third quarter of 2009. -Agencies

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