Ahli United Bank (AUB) has posted a net profit of $60 million for the year ended December 31, 2002, an increase of 24 percent over 2001, when net profits reached $48.3 million. Gross operating income for 2002 was $163 million, compared to $155 million in 2001, representing an increase of 5.2 percent, with an improved cost-to-income ratio of 44.2 percent.
In 2001, AUB’s cost-to-income ratio stood at 48.7 percent. Earnings per share rose to 3.30 cents, against 3.15 cents in 2001. The weighted average number of share outstanding was 1.807 billion, as opposed to1.537 billion in 2001.
Net interest income rose by 11.7 percent while fees and commissions were maintained at last year’s level. This supported a steady increase in the total operating income. Strong controls on all cost segment levels were maintained, which is reflected in the improved cost–to-income ratio, according to a company press release.
Total assets also grew by 25 percent over 2001 to $5.1 billion mainly due to a 15 percent growth in loans and advances to $2.2 billion financed by a 47 percent growth in equity to $830.6MM from $564.3MM in 2001.
“The Bank is pleased to announce a strong increase in net profits for 2002 of 24 percent, and to have achieved gross operating income in excess of $160 million despite the continued difficult international environment and high market volatility,” said the Chairman Fahad Al-Rajaan.
He added that “we continued to make excellent progress in developing our business lines despite a competitive market and that the bank remains strategically positioned to maintain our successful growth and meet our shareholders’ expectations.”
AUB is a fully-fledged commercial institution and investment bank providing wealth management, retail, corporate, treasury, offshore and private banking services. It is geared towards growth through the development of a larger client base in the Gulf Cooperation Council (GCC) states and of close partnerships with customers, staff and product providers.
The evolution of future mergers and acquisitions remains central to the Bank’s expansion strategy. AUB has a 43 percent share in Bank of Kuwait and the Middle East (BKME). BKME has a 10 percent market share in Kuwait.
As of 2002 year-end, AUB had total assets of $5.1 billion on shareholders’ equity of $830.6 million. Capital adequacy stood at 24.2 percent on an adjusted capital base of $ 944.1 million. AUB shares have been listed on the Bahrain Stock Exchange since August 2000 and are actively traded. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
