26 October 2011
AHLI UNITED BANK REPORTS A 19.5% INCREASE IN NET PROFIT FOR THE FIRST NINE MONTHS OF 2011

Ahli United Bank B.S.C. (AUB) reported a net profit attributable to its equity shareholders of US$ 240.3 million for the nine months ended 30 September 2011, a 19.5% increase over the same period in 2010 ( YTD Q3/2010: US$ 201.1 million). During Q3/2011, net profit attained was 20.6% higher, on a quarterly comparable basis, at US$ 78.6 million (YTD Q3/2010: US$ 65.2 million). The Group’s net operating income rose by 15.2% to US$ 481.3 million over the same period last year, reflecting the Group’s resilience in operating in the current difficult regional and international environment. The resultant basic earnings per share was US$ 4.8 cents for the period ended 30 September 2011(YTD 30 September 2010: US $ 4.1 cents).

Net interest income for YTD Q3/2011 increased by 12.3% to US$ 415.7 million (YTD Q3/2010: US$ 370.2 million). Fee income slightly increased to US$ 91.2 million, a 1.7% increase on a YTD basis. Judicious cost control measures together with the intelligent spend culture adopted by the Bank resulted in the cost income ratio improving to 31.6% (YTD Q3/2010: 32.7%), despite an unfavourable currency translation effect.

Prudent risk management and monitoring of the risk asset portfolio sustained its asset quality with the non performing loans ratio contained at 2.5% as at 30 September 2011 (31 December 2010: 2.4%). Provision charge during the current period declined by 15.0% to

US$117.1 million. The overall provision coverage ratio (including collective impairment provisions) increased to 137% as compared to 119% as of 31 December 2010.

Return on Average Equity for the nine-month period ended Q3/2011 of 13.1%, significantly improved over the 12.1% level achieved in the same period in 2010. Return on Average Assets also improved to 1.3% (YTD Q3/2010: 1.2%).

Asset growth was prudently managed at US$ 27.2 billion at 30 September 2011 up by 2.8% from US$ 26.5 billion at 31 December 2010 which mainly resulted from a 3.6% increase in loans & advances to US$15.0 billion. Customers’ Deposits increased by 12.4% (+US$1.8 billion) to reach US$16.7 billion which enabled AUB to reduce its dependence on wholesale funding by US$1.4 billion during the year.

“AUB continued its solid performance into the third quarter of 2011 against the backdrop of a very difficult regional and international operating environment. The sustained growth in net operating income and net profit attained demonstrates AUB’s resilience and the effectiveness of its business model based on geographic and product diversification within a prudent risk framework” said Fahad Al-Rajaan, Chairman, AUB.

13 July 2011
AHLI UNITED BANK REPORTS A 19% RISE IN H1/2011 PROFIT TO US$ 161.7 MILLION

Ahli United Bank B.S.C. (AUB) reported a net profit attributable to its equity shareholders of US$ 161.7 million for the half year ended 30 June 2011, a 19.0% increase over the same period in 2010 ( H1/2010: US$ 135.9 million). The resultant basic earnings per share were US 3.3 cents, compared to US 2.8 cents achieved in H1/2010. Q2/2011 net profit was 20.2% higher at US$ 84.4 million compared to US$ 70.2 million for Q2/2010.

Net interest income increased by 16.8% from US$ 239.2 million in H1/2010 to US$ 279.5 million in H1/2011. AUB's major associate banks in Qatar & Oman continued their strong performance in 2011 resulting in AUB's share of profits from associates increasing to US$ 31.2 million in H1/2011 compared to US$ 23.6 million in H1/2010. Overall cost income ratio improved to 31.0% (H1/2010: 32.4%).

Non performing loans remained stable at 2.4% with provision coverage increased to 128% (including collective impairment provision) as compared to 106% as of 30 June 2010.

The Group's Return on Average Equity for H1/2011 stood at 13.3%, compared to 12.3% achieved in the first half of 2010. Return on Average Assets also improved to 1.3% for H1/2011 (H1/2010: 1.2%).

Group's total assets grew by 4.1% to US$ 27.6 billion from US$ 26.5 billion at 31 December 2010 attributable mainly from additional customer deposits, prudent deployment in assets with a focus on maintenance of solid liquidity given the prevailing regional business climate. These results were made possible by strong support from AUB's stakeholders, which was further evidenced by capital funding from International Finance Corporation (IFC) and the IFC Capitalization Equity and Debt Funds during the period. IFC Capitalization Funds provided AUB with US$ 125 million new Tier I qualifying equity and US$165 million Tier II qualifying subordinated debt. An agreement was also executed with IFC to extend the maturity date of its existing Tier II US$ 200 million subordinated debt from 15 December 2016 to 15 December 2018, thereby increasing its capital effectiveness for AUB.

"AUB's strong performance for the first half of 2011 against the backdrop of unsettled regional political and economic conditions is very satisfactory. The capital infusion by IFC Capitalization Funds in April 2011 following execution of landmark deals on 31 March 2011 is another testimony to AUB's strong fundamentals and credentials as a major regional banking institution. " said Fahad Al-Rajaan, Chairman, AUB.