Sunday 25 April 2010

Gulf Bank First Quarter Earnings Much Lower Than Expected



Gulf Bank announced its 1Q10 earnings on the KSE today (announcement, Arabic only, below).

Most news reports have focused on the sharp drop in net income from 1Q09:  KD524,000 for 1Q10 versus KD1,593,000 in 1Q09.  As of yet unexplained.

Quite a dramatic drop.

But, a couple things more.
  1. Even at its old 1Q09 run rate, the ROE is rather dismal. And this is perhaps the more important story than the fluctuation.  How and when does GB achieve a reasonable ROE?  I'd note that NBK (and perhaps that's an unfair comparison) has a pro-forma projected 2010 ROE of more than 10 times GB's 2009 run rate.  And 32x 2010's projected run rate.
  2. What appears not to have been noticed is that despite recording a modest profit in 1Q10, GB's shareholders' equity is down roughly KD9,977,000 from 31 December 2009.  Not a large amount as a percentage of equity, but 19x 1Q10 profit!
  
[8:45:52]  بلغ ربح (خليج ب) 524 الف د.ك لل3 أشهر المنتهية في31-03-2010‏
يعلن سوق الكويت للأوراق المالية أن مجلس ادارة بنك الخليج (خليج ب)‏
قداعتمد البيانات المالية المرحلية للبنك للفترات المنتهية  في 31-03-2010 ،
وفقا لما يلي:‏
ِ1) الفترات الحالية:‏
البند      ال3 أشهر المنتهية في 31-03-10    ال3 أشهر المنتهية في 31-03-09‏
الربح (د.ك)                      524.000                   1.593.000‏
ربحية السهم(فلس كويتي)           0                                   1‏
اجمالي الموجودات المتداولة    2.877.635.000            3.680.674.000‏
اجمالي الموجودات           4.515.779.000              5.134.144.000‏
اجمالي المطلوبات المتداولة    3.966.175.000             4.462.353.000‏
اجمالي المطلوبات            4.118.427.000              4.710.893.000‏
اجمالي حقوق المساهمين      397.352.000                  423.251.000‏
علما بأن بنك الكويت المركزي قد وافق على هذه البيانات المالية بتاريخ ‏
يوم الخميس الموافق 22-04-2010.‏
بلغ اجمالى الايرادات من التعاملات مع الاطراف ذات الصلة مبلغ 1.596.000د.ك ‏
بلغ اجمالي المصروفات من التعاملات مع الاطراف ذات الصلة مبلغ 5.007.000‏
د.ك .‏

2 comments:

Unknown said...

Drop in Fair Valuation Reserve from KD35.5 million at 12/2009 to KD23.9 million at 3/2010. Gain receycled to Income Statement then set aside as specific provision against the laon portfolio.

Abu 'Arqala said...

Thanks.

I'm guessing related to the KD14mm gain on the sale of investments based on Chairman's comments I saw in AlQabas.