AHLI UNITED BANK B.S.C. REPORTS A NET PROFIT OF US$ 298.6 MILLION AND A RETURN ON AVERAGE EQUITY OF 13.8% FOR THE SIX MONTHS ENDED 30 JUNE 2021
Ahli United Bank B.S.C. (AUB) reported a net profit attributable to its equity shareholders of US$ 138.9 million for Q2/2021, which represents a 13.9% increase over the Q2/2020 reported profit of US$ 122.0 million driven by an increase in net interest income and lower level of provisioning. The Basic and Diluted Earnings per Share were US 1.2 cents in Q2/2021 versus US 1.0 cents in Q2/2020. Comprehensive income attributable to the owners of the bank for Q2/2021 was US$ 162.9 million (Q2/2020: US$ 194.3 million, -16.1%). Net interest income was US$ 214.7 million in Q2/2021 (Q2/2020: US$ 192.9 million, +11.3%) and total operating income was US$ 261.2 million in Q2/2021 (Q2/2020: US$ 256.8 million, +1.7%).
AUB reported a net profit attributable to its equity shareholders of US$ 298.6 million for the first half of year 2021 which represents a 1.7% increase over the H1/2020 reported profit of US$ 293.4 million mainly driven by an increase in net interest margins and lower provisioning requirements given the exceptional precautionary provisions raised in H1/2020 to adjust with the heightened levels of macro-economic and sectoral risks following the out-break of the Covid-19 pandemic. The Basic and Diluted Earnings per Share in H1/2021 were US 2.8 cents, compared to US 2.7 cents in H1/2020. Comprehensive income attributable to the owners of the bank for H1/2021 was US$ 337.8 million (H1/2020: US$ 157.3 million, +114.7%). Net interest income for H1/2021 was US$ 421.7 million (H1/2020: US$ 406.7 million, +3.7%) primarily due to improved spreads, reduced liquidity premia and stable market conditions. Total operating income for the H1/2021 was US$ 552.2 million (H1/2020: US$ 575.6 million, -4.1%).
The Group’s equity attributable to owners at 30 June 2021 increased by 4.8% to US$ 4.2 billion (31 December 2020: US$ 4.0 billion). Return on Average Equity for H1/2021 increased to13.8% (H1/2020: 13.6%). The AUB Group’s total assets as at 30 June 2021 marginally increased (+1.0%) to US$ 40.5 billion (31 December 2020: US$ 40.1 billion) reflecting prudent balance sheet growth compatible with prevailing operating environment in its main markets. Return on Average Assets was sustained at 1.6% for H1/2021 (H1/2020: 1.6%).
The non-performing loans ratio was lower at 2.5% (31 December 2020: 2.6%) with specific provision coverage of 83.9% (31 December 2020: 85.9%). Provision coverage levels are calculated on a cash provision basis excluding the value of the substantial additional non-cash (real estate and securities) collaterals available against non-performing loans.
The cost to income ratio for H1/2021 was 27.9% (H1/2020: 27.4%) reflecting AUB’s entrenched intelligent spend approach and the impact of the operational efficiencies achieved and digitization initiatives as part of the AUB group’s overall transformation plan.
The AUB Chairman, Mr. Meshal Al Othman, commented “Global and regional economies are showing signs of recovery encouraged by the progressive roll-out of vaccines for Covid-19. Uncertainty remains due to the risk of new mutant waves and their implications on different countries which are gradually opening up the free movement of people locally and internationally. Against the backdrop of the still evolving pandemic, AUB achieved very satisfactory performance in the first half of 2021 and is carefully planning its next steps for the balance of the year”.
He added “Despite the continuing general volatility, the AUB group took important steps in advancing its strategic agenda by increasing its stake in AUB Egypt from 85.5% to 95.7% through a share tender offer and through raising a very successful heavily oversubscribed US$ 600 million Additional Tier -1 Capital issue at AUB Kuwait.”
About Ahli United Bank (AUB)
Ahli United Bank B.S.C (AUB) is a leading pan-regional financial services provider, incorporated in Bahrain in May 2000. It offers a full range of retail, commercial and private banking & wealth management services, both conventional and Sharia-compliant, across the MENA region and the UK. AUB operates through its Bahrain Head Office and its subsidiaries in Kuwait, Egypt, Iraq, and the UK as well as its associates in Oman and Libya; and branch in the UAE (DIFC).
The key shareholders of AUB are the Public Institution for Social Security, Kuwait (18.86% stake) and Social Insurance Organization, Bahrain (10.01% stake).
AUB’s strong performance has earned it a string of prestigious local and regional accolades over the years, including: “Best Bank in the Middle East” by The Banker (2006, 2016) and by Euromoney (2007, 2012).