AHLI UNITED BANK REPORTS ANOTHER RECORD NET PROFIT OF US$ 150.7 MILLION FOR THE FIRST HALF OF 2007
Ahli United Bank B.S.C. (AUB) has announced their results for the first half of 2007. Net profit of US$ 150.7 million attributable to its equity shareholders has been announced for the half-year period ended 30 June 2007, an increase of 39.7 % over the same period in 2006 (US$ 107.9 million), thus surpassing consistently the prior years trends.
Net interest and other income to 30 June 2007 was US$ 313.6 million (2006 – US$ 239.0 million), an increase of 31.2 % together with a prudent cost management strategy resulted in the improvement in cost-to-income ratio to 35.1 % (2006 – 37.8 %). Basic earnings per ordinary share for the six month period ended 30 June 2007 was US cents 5.0, compared to US cents 3.6 for the corresponding period last year. Dilutive earning per ordinary share for the six month period ended 30 June 2007, adjusted for the impact of convertible Class A and Class B preference shares, was US cents 4.0 against US cents 2.9.
The resultant ROAE was 18.9% as compared to 15.7% for the same period last year.
As of 30 June 2007, The Group’s total assets stood at US$ 21.5 billion, an increase of 3.4 % over 31 December 2006, aided by an increase in customers’ deposits by US$ 238 million (+2.6 %) and inter-bank deposits by US$ 620.5 million (+ 9.0 %) compared to 31 December 2006. Furthermore, redeployment of excess inter-bank liquidity to meet loan portfolio commitments arising from an expanding corporate, commercial and retail relationships resulted in the loans portfolio increasing from US$ 8.9 billion in 31 December 2006 to US$ 10.2 billion at the end of 30 June 2007, representing an increase of 15.2 % .
“AUB’s consistent, solid returns year on year is a reflection of the Group’s ability to offer a range of comprehensive banking services to a wide, regional audience. Recently we signalled our intention to enter the Omani market,as part of AUB’s expansion strategy, through the signing of a Memorandum of Understanding with Alliance Housing Bank S.A.O.G (AHB), a joint stock company in the Sultanate of Oman, to acquire a 35% strategic stake through a capital increase,” said Fahad Al- Rajaan, Chairman, AUB.
In the Bank’s extraordinary general assembly meeting held on 3 July 2007, shareholders have approved the increase in authorised ordinary share capital from US$ 1 billion ( 4000 million shares of US$ 0.25 each) to US$ 2 billion ( 8000 million shares of US$ 0.25 each) in order to meet the group’s mission in becoming a pan gulf regional bank through organic and acquisition strategies. The shareholders also approved an increase of the Group’s holding of up to 100% in Ahli United Bank (Egypt) S.A.E. (AUBE) [formerly known as Delta International Bank S.A.E.], through a tender offer as required by the Capital Market Law in Egypt.
“Our position as one of the Gulf region’s leading, integrated banking Group has been validated by the international finance industry with AUB winning three major, regional awards in the span of the recent few months. We were named ‘Best Bank in the Middle East’ by three major, reputed finance journals: The Banker, Euromoney and Global Finance, in a rare achievement by any regional bank. Our success at this year’s regional awards underscores our efforts to consolidate our regional growth and provide our stakeholders with solid, innovative banking services across all key Arab states.”