Abu Dhabi's First Gulf Bank Q3 profit falls 9pct

Abu Dhabi's First Gulf Bank on Wednesday reported a 9-per cent fall in third quarter profit due to lower revenues from subsidiaries, but beat analysts forecasts.

The lender, the second-largest bank in the emirate by market value, made a profit of Dh849 million ($231.2 million) in the three months to September 30, down from Dh930m in the same period last year, it said in a statement.

Analysts polled by Reuters had estimated an average third quarter profit of Dh804.1m.

"We will maintain our focus on the core strength of the bank in corporate, retail and treasury activities," Andre Sayegh, the bank's chief executive said in the statement.

"The overseas expansion, subsidiaries and associated companies will continue to present complementary support to our core businesses," he said.

Core banking revenues contributed 98 percent towards total revenues, compared to 87 per cent in the third quarter last year.

Revenues from subsidiaries and associates fell 86 per cent to Dh31m.

Impairments stood at Dh1.31 billion at the end of September with Dh406m booked in the third quarter alone, it said.

Loans and deposits grew at single digits with loans at Dh95.5bn in September 2010 and deposits at Dh92.3bn.

In August, Citigroup downgraded the bank to "hold" from "buy," citing sluggish business activity and continued impact from the restructuring at state-owned conglomerate Dubai World

First Gulf Bank's shares closed 1.2 per cent lower in earlier trading on Wednesday. The results were released after the close of trading on Abu Dhabi's bourse.