The First Gulf Bank will commence a share buyback program for up to 10 per cent of the bank's shares, a report 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 directors has decided to step in to proactively protect our shareholders' assets,' Shaikh Hazza Bin Zayed Al Nahyan, chairman of FGB, was quoted as saying in a Gulf News report.

'While FGB commands a solid portfolio and our net profits grew by 68 per cent from September 2007 to September 2008, the share price declined by more than 40 per cent during the year 2008 due to the adverse market conditions,' he added.