AHLI UNITED BANK REPORTS ANOTHER RECORD PROFIT OF $ 225.9 MILLION TO 30 SEPTEMBER 2007
Ahli United Bank B.S.C. (AUB) has reported a net profit of US$ 225.9 million for the nine month period ended 30 September 2007, an increase of 37.5% over the same period in 2006 (US$ 164.3 million). This strong performance reflects the success of AUB’s business model executed through organic growth and regional acquisitions, whilst pursuing prudent and diverse risk management strategies. Furthermore it represents a continuing trend of year on year improved performance trends since inception.
Net interest and other income to 30 September 2007 was US$ 485.1 million (2006 – US$ 363.5 million), an increase of 33.5 %, with a cost-to-income ratio of 34.7% (2006 38.4%). Basic earnings per ordinary share for the nine month period ended 30 September 2007 was US cents 7.52, compared to US cents 5.47 for the corresponding period last year. Dilutive earnings per ordinary share for the nine month period ended 30 September 2007, adjusted for the impact of convertible Class A and Class B preference shares, was US cents 5.94 against US cents 4.37.
The resultant ROAE was 18.5 % as compared to 15.8 % for the same period last year.
As of 30 September 2007, the Group’s total assets stood at US$ 21.9 billion, an increase of 5.3 % over 31 December 2006, with a prudent approach to asset growth adopted in the light of the prevailing potential credit/liquidity driven global market effects arising from the US sub-prime credit crisis. The growth was funded by an increase in customers’ deposits by US$ 832.1 million (+10.0 %) and inter-bank deposits by US$475.4 million (+ 6.9 %) compared to 31 December 2006.
“AUB’s third quarter results are very encouraging; the bank is on track to achieve our targets for 2007. This year has proved very successful for the bank as we have continued to benefit from expanding regionally through strategic acquisitions and participation in high-profile, cross- border deals,” said Fahad Al- Rajaan, Chairman, AUB.
“Recently we signed an agreement to acquire a 35% stake in Alliance Housing Bank S.A.O.G (AHB), Oman together with an intended Technical Services and Management Agreement (TSMA) subject to necessary regulatory and statutory approvals. The Omani economy has tremendous, untapped potential and we hope our banking experience across the region will help AHB gain a significant share in the banking sector.”