Ahli United Bank net profit surges by 11.4% to US$ 419.2M for the period ended 30 September 2015
Ahli United Bank B.S.C. (AUB) reported a net profit attributable to its equity shareholders of US$ 419.2 million for the nine months ended 30 September 2015, an increase of 11.4% as compared to US$ 376.3 million achieved in YTD Q3/2014. Adjusted for net exceptional gain of US$ 24.2 million on sale of investments, YTD Q3/2015 net profit is US$ 395.0 million, a 5.0% increase over the same period reported profit in 2014. The net profit achieved for the third quarter of 2015 was US$ 140.9 million, a 23.8% increase over the 2014 third quarter reported profit of US$ 113.8 million. The Basic Earnings per Share in YTD Q3/2015 increased to US 6.5 cents, from US 6.0 cents in YTD Q3/2014.
The growth in the operating results of AUB was underpinned by the growth in its core banking income lines. Net interest income grew by 4.5% from US$ 578.7 million to US$ 604.8 million, while fee income grew by 6.0% from US$ 111.5 million to US$ 118.2 million. The bank’s focus on adopting a judicious ‘’intelligent spend” approach, improved the cost income ratio to 27.5% (YTD Q3 / 2014: 28.9%). This surge in operating profit was achieved despite the continued challenging economic regional and international environment.
Prudent risk management and monitoring sustained its asset quality with the non-performing loans ratio standing at 2.1% (31 December 2014: 2.0%) while the specific provision coverage ratio improved to 84.2% (31 December 2014: 83.8%). Total provision coverage ratio, inclusive of collective impairment provisions, rose to 166.1% as at 30 September 2015 (31 December 2014: 159.4%).
The Group’s Return on Average Equity (ROAE) for YTD Q3/2015 increased to 16.7%, based on improved operating results as compared to 15.9% achieved in the prior period. Return on Average Assets was higher at 1.8% for YTD Q3/2015 (YTD Q3/2014: 1.6%).
Mr. Hamad Al-Humaidhi, AUB Chairman, commented: “AUB continued its robust performance in the first nine months of 2015 even as regional economic activity moderates and international markets continue to be uncertain and volatile. AUB’s sustained growth reflected in the YTD Q3/2015 result is a testament to AUB’s well-managed business model based on diversification and cross border flows and of the success of its selective growth initiatives to increase operating income and mitigate risk challenges in its target markets.”
“Despite expected upcoming challenges from an unstable global economy and its effect on AUB’s target markets, AUB continues to remain confident of its resilience and ability to maintain its performance given its strong fundamentals and prudent, proactive management of risks and costs. It will continue to seek, identify and tap organic as well as inorganic growth opportunities within an acceptable risk‐return framework. ” added Mr. Al-Humaidhi.
Ahli United Bank
Ahli United Bank BSC (AUB) is a full fledged commercial and investment banking group providing wealth management, retail, corporate, treasury, offshore and private banking services.
The Group's businesses consist of the operations in Bahrain, a wholly owned subsidiary in the UK and associates in Kuwait, Qatar, Oman, Egypt and Iraq. In Kuwait, AUB has an effective holding of 75% in the Bank of Kuwait and The Middle East while in Qatar, AUB has a 40% stake in Ahli Bank QSC. In Oman, AUB has a 35% stake in Ahli Bank SAOG while in Iraq AUB has a 49% stake in the Commercial Bank of Iraq. In Egypt, AUB, its associate banks and other Gulf financial institutions together hold an 89.3% stake in Ahli United Bank SAE. Apart from these banks, AUB has a nominal stake of 75% in KMEFIC, a brokerage, asset management and corporate finance company based in Kuwait with operations around the Arabian Gulf.
Overall, the AUB Group, through its subsidiaries and associates, operates through a network of 93 branch offices and employs over 3,000 people.
AUB’s stated mission is to create an unrivalled ability to meet customer needs, provide fulfillment and development for staff and to deliver outstanding shareholder value. AUB’s strategy is to expand through both organic growth and acquisition in order to act as a ‘multifaceted financial bridge’ between the international financial markets and its Gulf clients. It has sought to establish an operating presence in each of the Pan-GCC countries with a targeted 10% - 20% market share. To this end, AUB continues to develop and invest to increase its ability to acquire new businesses and rapidly integrate them with the bank’s systems. This development has helped accelerate progress in the delivery of financial services and penetration into targeted geographical markets.