28 July 2010
AHLI UNITED BANK REPORTS NET PROFIT OF US$135.9 MILLION FOR THE FIRST HALF OF 2010

Ahli United Bank B.S.C. (AUB) reported a net profit attributable to its shareholders of US$135.9 million for the six months ended 30 June 2010 (H1/2009: US$143.5 million), a 5.3% drop compared to the H1/2009 results. This includes the Q2/2010 profit US$70.2 million up by 6.8% over the trailing Q1/2010 quarter results of US$65.7 million.

The Bank’s H1/2010 results were driven by an increase in net interest income to US$239.2 million (H1/2009: US$224.3 million) resulting from judicious management of funding costs resulting in improving margins and prudent deployment of liquidity in risk assets. Loans and advances grew by 5.0% (+US$0.7 billion) to US$14.0 billion funded by a 7.7% growth in customer deposits (+US$1.0 billion). Total deposits grew by US$1.4 billion (+ 7.6%) to US$20.2 billion, as the Bank continued to focus on ensuring adequate liquidity under current operating conditions.

The Bank reduced the loan loss provision charge for H1/2010 to US$ 80.2 million (H1/2009: US$128 million) through focused risk management measures.

Overall, the Group’s return on average equity stood at 12.3% and its Return on Average Assets is at 1.2% in H1/2010. The resultant basic and diluted earnings per share stood at 2.8 US cents for the half year ended 30 June 2010.

This quarter also saw the successful conversion of AUB’s 75% subsidiary, BKME, into a full fledged Sharia compliant bank and its consequent rebranding as Ahli United Bank, Kuwait, effective 1 April 2010 as well as its first quarter of profitable operations under its new Sharia compliant format.

“It is encouraging to note that the Bank has delivered a profitable first half of what still remains a challenging year with improving quarter on quarter performance. It is also positive to note that both S&P and Capital Intelligence have re-affirmed their ratings for AUB at ‘A- (Stable)’ and ‘A (Stable)’ respectively, thereby acknowledging the Bank’s resilience under difficult operating conditions”, said Fahad Al-Rajaan, Chairman, AUB.

“In parallel to the improvement in our financial performance, we have continued to make progress on our strategy of taking the Group to new markets and further consolidating our ownership status in existing AUB Group banks. During 2010, we have increased our stake in AUB (Egypt) to 85.1% through 2 tender offers which concluded in January 2010 and July 2010 respectively. We have concluded a 40% stake acquisition in United Bank for Commerce & Investment (UBCI) in Libya which opens a new market for the AUB Group. Furthermore a tender offer is currently in process to increase our stake in Commercial Bank of Iraq (CBIQ) from 49% to 60% subject to market response. These moves are all integral to our business model of building a stronger regional banking platform focused on meeting our clients’ cross-borders needs and delivering outstanding value to our customers across the region and beyond”, Mr. Al-Rajaan added.

29 April 2010
AHLI UNITED BANK REPORTS A NET PROFIT OF US$ 65.7 MILLION FOR THE FIRST QUARTER OF 2010

Ahli United Bank B.S.C. (AUB) reported a net profit of US$ 65.7 million for the three month period ended 31 March 2010, a drop of 23.5% compared to the same period last year (Q/1 2009: US$ 85.9 million). This result represents a substantial rise of 284% over the trailing Q/4-2009 profit of US$ 17.1 million and reflects a strong improvement in core earnings net of exceptional items relative to the comparative period in 2009.

The Group’s net profit was achieved on the back of an increased net interest margin of 2.4% in Q1/2010 (Q/1 2009: 2.3% ) while prudently growing the loans and advances portfolio of US$ 13.6 billion by 2.3% over the 31 December 2009 balances of US$ 13.3 billion. This generated a net interest income of US$ 117.1 million (an increase of 9.4% over Q1 2009). The Group’s net interest margins have been sustained, underpinned by its focused asset liability management. The Q1/2010 results include a loan loss provision charge of US$ 51.8 million (Q/1 2009: US$ 47.0 million) which enabled the Bank to fully provide for its exposures to specific impaired Saudi corporate assets.

The Bank’s focused efforts on streamlined process efficiencies and cost control helped further contain its total operating expenses at US$ 58.9 million compared to US$ 60.4 million for the same period last year. The resultant cost income ratio for Q1/2010 was a low 31.9%.Basic and dilutive earnings per ordinary share for the three month period ended 31 March 2010, was US cents 1.3.

The Group’s total assets as of 31 March 2010 stood at US$ 24.7 billion, an increase of 4.7% over the US$ 23.6 billion reported at 31 December 2009, funded largely by a growth in customers’ deposits by 6.6% to US$ 14.1 billion over the US$ 13.2 billion as at 31 December 2009.

AUB also raised its stake in Ahli United Bank, Egypt (AUBE) from 35.3% to 79.6% through a path-breaking Mandatory Dual Tender Offer which was successfully concluded in January 2010. This transaction provided a unique opportunity for AUBE investors to sell their shares or to co-partner with AUB in its regional operations through a share and Lower Tier II subordinated debt

“2010 remains a challenging year, however we take comfort in the overall resilience demonstrated by the Bank in Q1/2010. It is gratifying to note our ability to maintain unwaveringly high counterparty and customers’ confidence at all times and to improve our core operating earnings.”, said Fahad Al- Rajaan, Chairman, AUB.

“In March this year, we have entered the promising Libyan market by way of a 40% stake acquisition in United Bank for Commerce and Investment L.S.C. We have also secured a ten year renewable Technical Services Agreement to provide management and technical services to this bank. This new market entry further demonstrates our commitment to our regional growth strategy applied in a phased and business justifiable manner”, added Mr. Al-Rajaan.