Ahli United Bank B.S.C. (AUB) reported a net profit attributable to its equity shareholders of US$ 558.4 million for the nine months ended 30 September 2019, an increase of 5.7% as compared to US$ 528.3 million achieved in YTD Q3/2018. The Q3/2019 net profit of US$ 180.9 million represents a 5.9% improvement over the Q3/2018 reported profit of US$ 170.8 million. The Basic Earnings per Share in YTD Q3/2019 were US 6.2 cents (+6.9%), compared to US 5.8 cents in YTD Q3/2018 (EPS: US 2.1 cents in Q3/2019 versus US 2.0 cents in Q3/2018).
The improved performance for YTD Q3/2019 continues to reflect benefits arising from AUB’s diversified business model, robust risk management framework and judicious business driven operating culture.
Net interest income improved by 2.0 % (+US$ 14.3 million) to US$ 722.7 million in YTD Q3/2019 compared to US$ 708.4 million in YTD Q3/2018 driven by growth in average loans and investments. Increases in net interest income, trading and investment income resulted in a rise in operating income to US$ 919.3 million during the first nine months of 2019 compared to US$ 907.0 million in YTD Q3/2018 (Q3/2019: US$ 289.2 million versus Q3/2018: US$ 294.6 million). Net operating income increased (+4.1%) from US$ 845.2 million in YTD Q3/2018 to US$ 880.1 million in YTD Q3/2019 (Q3/2019: US$ 284.3 million versus Q3/2018: US$ 275.1 million). Cost to income ratio stood at 26.7% (YTD Q3/2018: 26.2%) reflecting the consistent implementation of AUB’s structured cost discipline and intelligent spend approach.
Solid asset quality levels were also maintained with a non-performing loans ratio of 2.0% (31 December 2018: 1.9%) with specific provision coverage ratio of 85.2% (31 December 2018: 85.5%) and a total provision coverage ratio of 187.0% (31 December 2018: 214.7%). These provision coverage levels are calculated on a cash provision basis excluding the value of the additional significant non-cash (real estate and securities) collateral available against non-performing loans.
The Group’s total assets at 30 September 2019 increased by 8.8% to US$ 38.6 billion (31 December 2018: US$ 35.5 billion). Return on Average Assets was at 2.2% for YTD Q3/2019 (YTD Q3/2018: 2.2%). The Group’s equity attributable to owners at 30 September 2019 increased by 4.1 % to US$ 4.1 billion (31 December 2018: US$ 3.9 billion). The Group’s Return on Average Equity (ROAE) achieved for YTD Q3/2019 was 18.1% (YTD Q3/2018: 18.4%).
Mr. Meshal Alothman, AUB Chairman, commented: “AUB sustained its core performance for the first nine months of 2019 and is looking forward to maintaining its positive growth trajectory. AUB’s continued growth is a testament to its well-managed business model based on diversification and cross border flows supported by a dynamic and focused approach to ensure the effective deployment of capital resources across the AUB Group’s markets in a prudent and profitable manner.”