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.