Ahli United Bank B.S.C. reports a Q1/2016 profit of US154.6 million attributable to the shareholders of the bank

Press release
Published May 4th, 2016 - 11:16 GMT
AUB Chairman Mr. Al-Humaidhi
AUB Chairman Mr. Al-Humaidhi

Ahli United Bank B.S.C. (AUB) reported a net profit attributable to its equity shareholders of US$ 154.6 million for the quarter ended 31 March 2016. The net profit reflected an increase of 5.0% in Q1/2016 as compared to the net profit figure of US$ 147.2 million achieved in Q1/2015. The Q1/2016 net profit also represents a 31.0% improvement over the Q4/2015 trailing quarter reported profit of US$ 118.0 million. The Basic Earnings per Share in Q1/2016 were US 2.3 cents, compared to US 2.2 cents in Q1/2015.

Despite continuing weak economic trends into 2016, AUB continued to grow its operating income underpinned by an effective balance sheet management strategy, with net interest income (NII) rising by 5.5% to US$ 201.3 million during the quarter.  Total operating income grew by 6.3% from US$ 263.9 million to US$ 280.5 million. The cost income ratio improved to 28.1% (Q1/2015: 28.5%). 

Solid asset quality levels were sustained with the non-performing loans ratio standing unchanged at 1.8% (31 December 2015: 1.8%) while the specific provision coverage ratio stood at 84.0% (31 December 2015: 84.6%). The total provision coverage ratio, inclusive of collective impairment provisions, was 181.8% as at 31 March 2016 (31 December 2015: 181.9%).

The Group’s Return on Average Equity (ROAE) for Q1/2016, increased to 17.6%, compared to the ROAE of 17.5% achieved in the first quarter of 2015. Return on Average Assets also increased to 2.0% for Q1/2016 (Q1/2015: 1.9%).

Mr. Hamad Al-Humaidhi, AUB Chairman, commented: “AUB continued its strong and steady performance in Q1/2016 underpinned by the viability of the Bank’s core regional business model based on diversification and cross border flows”.

“In March 2016, the Bank succeeded in expanding its geographic reach further by opening its fully owned subsidiary Ahli United Bank Limited (AUBL) in Dubai International Financial Centre (DIFC), UAE. AUBL is the first bank in the GCC region to receive the Category 1 License from Dubai Financial Services Authority (DFSA). This launch enables AUB to offer corporate banking, private banking, wealth management, trade finance, treasury and cross-border financial products and services to its clients based in the UAE as well as in the wider Middle East region.  All these products and services are available on a conventional as well as a Shari’a compliant basis through AUBL. The launch of AUBL represents an important addition to the AUB group banks and a key step forward in pursuing its defined strategy of targeted regional expansion, with emphasis on increasing cross border business flows. ” added Mr. Al-Humaidhi.

Background Information

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.

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