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AHLI UNITED BANK B.S.C. REPORTS A NET PROFIT OF US$ 192.9 MILLION ATTRIBUTABLE TO OWNERS OF THE BANK FOR Q1/2019

Ahli United Bank B.S.C. (AUB) reported a net profit attributable to its equity shareholders of US$ 192.9 million for the quarter ended 31 March 2019. The net profit reflected an increase of 10.4% in Q1/2019 as compared to the net profit of US$ 174.7 million achieved in Q1/2018. The Q1/2019 net profit also represents a 13.9% improvement over the Q4/2018 trailing quarter reported profit of US$ 169.3 million. The Basic Earnings per Share in Q1/2019 were US 2.2 cents (+10.0%), compared to US 2.0 cents in Q1/2018.

Operating income grew by 6.6% to US$ 311.9 million (Q1/2018: US$ 292.6 million) mainly driven by an increase in net interest income by US$ 13.9 million (+6.1%) to US$ 243.3 million (Q1/2018: US$ 229.3 million) attributable to growth in loans and investments and to effective interest rate risk management. Net operating income increased from US$ 279.4 million in Q1/2018 to US$ 298.4 million in Q1/2019 (+6.8%).

Operating results continued to be supported by operational efficiencies resulting in an improved cost to income ratio of 25.6% (Q1/2018: 25.9%).

Despite challenging operating conditions, solid asset quality levels were sustained with a non-performing loans ratio of 1.8% (31 December 2018: 1.9%) while specific provision coverage ratio increased to 85.6% (31 December 2018: 85.5%). The total provision coverage ratio, excluding the available significant asset collaterals, improved to 222.7% as at 31 March 2019 (31 December 2018: 214.7%).

The Group’s total assets at 31 March 2019 increased by 4.2% to US$ 37.0 billion (31 December 2018: US$ 35.5 billion). Return on Average Assets was sustained at 2.3% for Q1/2019 (Q1/2018: 2.3%). The Group’s equity attributable to owners at 31 March 2019 stood at US$ 3.7 billion (31 December 2018: US$ 3.9 billion) post deduction of 2018 year end appropriations totalling US$ 399.8 million. The Group’s Return on Average Equity (ROAE) for Q1/2019, increased to 18.7%, compared to 18.2% achieved in Q1/2018.

Mr. Meshal Al-Othman, AUB Chairman, commented: “Our continued growth in Q1/2019 demonstrates AUB’s resilience and ability to deliver sustainable core earnings on a consistent basis under its diversified well managed business model. AUB’s strategic investments across multiple markets, robust risk management, intelligent cost control measures and ongoing focus on the sourcing of cross border business flows has helped achieve its net profit growth for Q1/2019, while maintaining solid asset quality parameters and tight cost discipline. ”

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AHLI UNITED BANK B.S.C. REPORTS A 12.7% SURGE IN 2018 NET PROFIT ATTRIBUTABLE TO OWNERS OF THE BANK TO US$ 697.5 MILLION

AHLI UNITED BANK B.S.C. REPORTS A 12.7% SURGE IN 2018 NET PROFIT ATTRIBUTABLE TO OWNERS OF THE BANK TO US$ 697.5 MILLION

Ahli United Bank B.S.C. (AUB) reported a net profit attributable to its equity shareholders of US$ 697.5 million for the year 2018, representing a rise of 12.7% as compared to the net profit of US$ 618.7 million in 2017. The net profit in Q4/2018 was US$ 169.3 million as compared to US$ 150.0 million in Q4/2017.

Operating income increased from US$ 1,119.4 million to US$ 1,210.6 million in 2018 (+ 8.1%). The growth in operating income, mainly driven by an increase in net interest income (NII) by US$ 64.1 million (+7.3%) to US$ 940.5 million (2017: US$ 876.5 million), was attributable to an increase in average interest earning assets and to the repricing and re-positioning of the loan portfolio, complemented by an effective interest rate risk management strategy. Net operating income increased from US$ 1,030.4 million to US$ 1,124.3 million in 2018 (+ 9.1%).

Operating income in Q4/2018 was US$ 303.5 million as compared to US$ 294.2 million in Q4/2017 (+3.1%). Net operating income for Q4/2018 was US$ 279.1 million, higher by 6.7% compared to US$ 261.6 million in Q4/2017.

The continued disciplined implementation of the intelligent spend approach and the benefits of growing operational efficiencies within the AUB Group resulted in a cost income ratio of 27.1% (2017: 28.8%).

Solid asset quality levels were sustained with a gross non-performing loans ratio of 1.9% (31 December 2017: 1.9%) while the specific provision coverage ratio increased to 85.5% (31 December 2017: 85.1%). The total provision coverage ratio, inclusive of credit loss provisioning under IFRS 9 but excluding very substantial non-cash collaterals available, improved to 214.7% as at 31 December 2018 (31 December 2017: 154.3%).

Overall Return on Average Equity (ROAE) increased to 18.1% (2017: 16.5%) while the Return on Average Assets (ROAA) increased to 2.2% (2017: 2.1%).

The Group’s total assets grew by US$ 2.3 billion (+6.8%) to reach US$ 35.5 billion at 31 December 2018 driven by a growth in the non-trading investments portfolio to US$ 7.6 billion (31 December 2017: US$ 6.0 billion) as part of an overall strategy to further balance-sheet diversification and to enhance in-built liquidity sources. Asset growth was funded from an increase in customer deposits (+US$ 1.7 billion) and through repo borrowings (+US$ 0.6 billion). Equity attributable to the owners of the bank increased by 2.4% to US$ 3.9 billion in 2018 (2017: US$ 3.8 billion).

The resultant basic earnings per share increased by 12.2% to US cents 8.3 for the year ended 31 December 2018 (2017: US cents 7.4). The Board of Directors has recommended a distribution comprising of a cash dividend of US cents 5.0 per share (2017: US cents 4.5 per share) together with a bonus ordinary share issue of 10% (2017: 5%).

Mr. Meshal Al-Othman AUB Chairman, commented: “AUB continued its solid performance in 2018 against the backdrop of a continuing general difficult operating environment. Achieving a very robust growth of 12.7% in net profit over 2017 demonstrates its strong underlying fundamentals and the resilience of its diversified business and geographic model.”

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AHLI UNITED BANK’S AGM APPROVES 18% CASH AND 10% BONUS SHARES DISTRIBUTIONS

Ahli United Bank’s AGM approves 18% cash and 10% bonus shares distributions

Ahli United Bank B.S.C has today held its Annual General Meeting and its Extraordinary General Meeting at the Bank’s headquarters in Seef District, Kingdom of Bahrain. The meetings were presided over by AUB’s Chairman Mr. Hamad Al-Humaidhi and were attended by shareholders representing 80.57% of Bank’s shares.

The AUB AGM approved the distribution of a cash dividend of 18%, amounting to US$ 4.5 cents per share (similar to fiscal 2015) and totaling US$ 309.1 million, and an increased 10% bonus share issue (ten shares per 100 ordinary shares) to shareholders registered as of 29 March 2017.

AUB’s shareholders have also agreed the appointment of Mr. David Hodgkinson as an expert independent director to the Board. Mr. Hodgkinson enjoyed a longstanding and prestigious career in international and regional banking, mostly with the HSBC group where he held a number of senior positions; including Group Managing Director & Chief Operating Officer and Chairman & Chief Executive of HSBC Bank Middle East Limited.

At their Extraordinary General Meeting held on the same day, AUB’s shareholders have voted to increase the Bank’s authorized capital from US$2 billion to US$2.5 billion divided into 10 billion shares of US 25 cents par value each to provide room for future capital increases. They also resolved to extend by two years their standing authorization for the Board of Directors to decide on the timing, pricing and terms of the issuance of up to US$ 4 billion in bonds, loans or other similar subordinated financial instruments, as necessary to support the growth plans of the Bank.

Reporting to shareholders, Chairman Al-Humaidhi said: “Despite the continuing economic and security challenges in some of our key operating markets, I am pleased to report another excellent performance in 2016. Consolidated net profit grew by 6.2% to US$ 570.6 million, on the back of sustained strong and broad-based earnings momentum, with total operating income increasing by 5.2% to US$ 1,149.0 million for 2016”.

“In March 2016, the AUB Group launched its banking operations in the Dubai International Financial Centre (DIFC), UAE through incorporating Ahli United Bank Limited (AUBL), a 100% subsidiary of AUB. This launch, pursuant to a Category 1 license granted by the Dubai Financial Services Authority (DFSA), enables AUB Group to offer corporate banking, private banking, wealth management, trade finance, treasury and cross-border financial products and services to clients based in the UAE as well as in the wider Middle East region. The expansion into the UAE market is in line with AUB Group’s strategy to develop integrated banking presences in all the Gulf markets and to act as a preferred regional intermediary for its clients particularly in terms of arranging their cross border banking needs”.

“We are also very pleased that AUB was named ‘Bank of the Year, Middle East, 2016’ for the second time by The Banker magazine, a subsidiary of the UK-based Financial Times Group, in recognition of the Bank’s strong financials as well as of the wide range of initiatives it undertakes across the region”.

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AHLI UNITED BANK B.S.C. NET PROFIT SURGES BY 6.2% to US$ 570.6 MILLION

AHLI UNITED BANK B.S.C. NET PROFIT SURGES BY 6.2% to US$ 570.6 MILLION

Ahli United Bank B.S.C. (AUB) reported a net profit attributable to its equity shareholders of US$ 570.6 million for the year 2016, representing a growth of 6.2% compared to a net profit of US$ 537.2 million in 2015. The net profit in Q4/2016 was US$ 128.5 million as compared to US$ 118.0 million in Q4/2015.

Despite the continuing general weakness in the regional and global economies, the positive operating results of AUB were underpinned by prudent risk taking, effective asset and liability management and judicious cost controls. Net interest income (NII) grew by 1.7% from US$ 814.7 million to US$ 828.2 million. The NII increase was achieved through a prudent re-deployment of funds within a conservative and diversified risk framework. Fees, commissions & other income grew by 9.7% (+ US$ 15.4 million) to US$ 173.3 million. As a result, total operating income grew by 5.2% to reach US$ 1,149.0 million (2015: US$ 1,091.9 million). The intelligent cost spend discipline instilled across all AUB Group units was sustained resulting in an improvement of the cost income ratio to 27.8% (2015: 28.3%).

The non-performing loan ratio was contained at 2.3% as at 31 December 2016 while maintaining a very solid specific provision coverage ratio of 84.9% (31 December 2015: 84.6%). The total provision coverage ratio was 155.6% (2015: 181.9%).

Overall Return on Average Equity (ROAE) increased to 15.7% (2015: 15.6%) while the Return on Average Assets (ROAA) increased to 1.8% (2015: 1.7%).

The resultant basic earnings per share were US cents 8.0 for the year ended 31 December 2016 (2015: US cents 7.7). Given the satisfactory results for the year, the Board of Directors has recommended distribution comprising a cash dividend of US cents 4.5 per share (2015: US cents 4.5) together with a bonus ordinary share issue of 10% (2015: 5%).

Mr. Hamad Al-Humaidhi, AUB Chairman, commented: “Despite the economic and security challenges faced in its operating markets, AUB continued its robust performance in 2016 maintaining growth in core earnings and operating net profit. The 2016 result is a testament to AUB’s well-managed business model based on diversification, targeting of cross border flows and selective growth initiatives to increase operating income that continue to serve AUB well.

During the year, AUB succeeded in expanding its geographic reach by opening its fully owned subsidiary Ahli United Bank Limited (AUBL) in Dubai International Financial Centre (DIFC), UAE. This launch enables AUB to offer corporate banking, private banking, wealth management, trade finance, treasury and cross-border financial products and services to its clients based in the UAE as well as in the wider Middle East region. All these products and services are available on a conventional as well as on a Shari’a compliant basis through AUBL. The launch of AUBL represents an important addition to the AUB Group and a key step forward in pursuing its defined strategy of targeted regional expansion, with emphasis on increasing cross border business flows.

In December 2016, AUB received for the second time the “Bank of the Year, Middle East” award from the UK based The Banker magazine. “

“While operating challenges remain strong, AUB looks forward to 2017 with focused plans and objectives to advance our regional strategy in a balanced and prudent manner” added Mr. Al-Humaidhi.

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AHLI UNITED BANK NAMED “BANK OF THE YEAR – MIDDLE EAST 2016” BY ‘THE BANKER’

AHLI UNITED BANK NAMED “BANK OF THE YEAR – MIDDLE EAST 2016” BY ‘THE BANKER’

Ahli United Bank (AUB) has been recognised as “Bank of The Year – Middle East 2016” by The Banker, the world’s longest running international banking magazine and member of the Financial Times Group. This represents the second time that AUB has received this prestigious award.

The announcement was made at the official ‘Bank of the Year Awards 2016’ gala event, held recently in London and attended by senior bankers from around the world.

Aimed at rewarding and promoting industry wide excellence in the global banking community, the award’s judging panel noted that AUB has “made the most progress over the past 12 months; not only in terms of the bank’s strong financials, but also in the wide range of initiatives which the bank undertook during this period”.

The Banker listed the launch of a new wholly owned AUB subsidiary bank in Dubai International Financial Centre, increasing ownership of its insurance joint venture to 100%, increasing the paid-up capital in AUB’s Egyptian subsidiary and the full conversion of its Libyan affiliate to a Sharia-compliant bank despite a very challenging and operating environment as the key factors in winning the regional award. The Banker went on to say that this regional title “is testament to the strong management, sound business model and strategy of AUB”.

Accepting the award on behalf of AUB, Group CEO & Managing Director Adel El-Labban said:” We are honoured to receive this prestigious award from a leading authority such as The Banker for the second time. This repeat award is a fitting tribute to the continued loyalty and support of our shareholders and customers, to the dedication and professionalism of our team across the AUB Group and to our commitment to excellence in all our efforts to achieve our well defined business strategy and vision.”

El-Labban added: “AUB is very proud to be selected by the industry as a leader in regionalization initiatives and for the recognition given to its various ongoing organic and inorganic business development initiatives across its home markets in the GCC and MENA countries.”

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AUB NET PROFIT ATTRIBUTABLE TO EQUITY SHAREHOLDERS SURGES BY 5.5% TO US$ 442.1 MILLION FOR THE PERIOD ENDED 30 SEPTEMBER 2016

AUB NET PROFIT ATTRIBUTABLE TO EQUITY SHAREHOLDERS SURGES BY 5.5% TO US$ 442.1 MILLION FOR THE PERIOD ENDED 30 SEPTEMBER 2016

Ahli United Bank B.S.C. (AUB) reported a net profit attributable to its equity shareholders of US$ 442.1 million for the nine months ended 30 September 2016, an increase of 5.5% as compared to US$ 419.2 million achieved in YTD Q3/2015. The net profit achieved for the third quarter of 2016 was US$ 140.9 million, similar to 2015 third quarter reported profit of US$ 140.9 million. The Basic Earnings per Share in YTD Q3/2016 increased to US 6.3 cents, from US 6.2 cents in YTD Q3/2015.

The growth in net profit of AUB was underpinned by the growth in its total assets to US$ 35.8 billion (+5.3%) from US$ 34.0 billion at 2015 year end. Net interest income grew by 2.5% from US$ 604.8 million to US$ 619.7 million. Fees, commissions & other income grew by 4.9% from US$ 123.2 million to US$ 129.3 million. As a result, net operating income increased by 5.2% to reach US$ 763.7 million. With the continued application of our “intelligent spend” policy, operating expenses were contained at US$ 235.1 million (+2.4%) resulting in a cost to income ratio of 28.3% (YTD Q3 / 2015: 27.5%).

Asset quality parameters continued to be healthy with a non performing loans ratio of 2.1% backed by a conservative total provision coverage ratio of 173.2%, inclusive of collective impairment provisions. With collaterals, the coverage ratio increased to 287.8%.

The Group’s Return on Average Equity (ROAE) for YTD Q3/2016 increased to 17.0%, based on improved operating results as compared to 16.7% achieved in the prior period. Return on Average Assets was higher at 1.9% for YTD Q3/2016 (YTD Q3/2015: 1.8%).

Mr. Hamad Al-Humaidhi, AUB Chairman, commented: “Despite tighter fiscal policy and weaker private sector activity resulting in lower liquidity in the banking system and moderate regional economic growth, AUB sustained its positive core performance trend in the first nine months of 2016. AUB’s growth is a testament to AUB’s well-managed business model based on diversification and cross border flows and of the success of its selective growth initiatives to increase profitability and mitigate risk challenges in its target markets.”

“In October 2016, the Ahli United Bank K.S.C.P., AUB’s subsidiary in Kuwait, successfully completed a US$ 200 million issue of Additional Tier 1 Perpetual Basel III Compliant Sukuk. The Issue was well received in international markets with more than three times subscription. This also represents a clear testimony of the AUB Group’s strong credentials among prime international and regional investors as a well-managed, successful and creditworthy financial institution. AUB will continue to seek, identify and tap organic as well as inorganic growth opportunities within an acceptable risk‐return framework. ” added Mr. Al-Humaidhi.

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AUB REPORTS H1/2016 NET PROFIT OF US$ 301.2 MILLION ATTRIBUTABLE TO ITS SHAREHOLDERS

AUB REPORTS H1/2016 NET PROFIT OF US$ 301.2 MILLION ATTRIBUTABLE TO ITS SHAREHOLDERS

Ahli United Bank B.S.C. (AUB) reported a record net profit of US$ 301.2 million attributable to its equity shareholders for the half year ended 30 June 2016. The net profit reflected an increase of 8.2% in H1/2016 as compared to the net profit figure of US$ 278.4 million achieved in H1/2015. The Q2/2016 net profit of US$ 146.6 million represents a 11.7% improvement over the Q2/2015 reported profit of US$ 131.2 million. The Basic Earnings per Share in H1/2016 were US 4.2 cents, as compared to US 4.1 cents in H1/2015.

AUB continued to grow its operating income with net interest income (NII) rising by 4.0% to US$ 407.4 million during the period. Total operating income grew by 7.8% from US$ 529.3 million to US$ 570.9 million. The cost income ratio improved to 27.7% (H1/2015: 28.8%).

The non-performing loans ratio at H1/2016 stood at 2.1% (31 December 2015: 1.8%) with an enhanced specific provision coverage ratio of 85.3% (31 December 2015: 84.6%). The total provision coverage ratio, inclusive of collective impairment provisions, was 177.0% as at 30 June 2016 (31 December 2015: 181.9%). Both specific and total coverage ratios are exclusive of the significant available collaterals against impaired assets.

The Group’s Return on Average Equity (ROAE) for H1/2016, increased to 17.4%, compared to the ROAE of 16.7% achieved in the half year of 2015. Return on Average Assets also increased to 1.9% (H1/2015: 1.8%).

Mr. Hamad Al-Humaidhi, AUB Chairman, commented: “The strong results for H1/2016 are a record and represent clear testimony to AUB’s well-managed and resilient business model based on regional diversification and cross border flows as well as proof of the success of its balance-sheet management initiatives to increase operating income and mitigate risk challenges in its target markets despite continuing weak economic conditions in 2016”.

“AUB is currently not expecting any material impact on its asset quality or overall performance due to the BREXIT event, given the concentration of its UK exposures in good quality secured assets and the ongoing application of robust credit underwriting standards and very conservative loan to value (LTVs) policy guidelines. I am optimistic that AUB is well positioned to meet and handle the emerging challenges arising out of evolving global market conditions post BREXIT and other geo-political developments”, added Mr. Al-Humaidhi.

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AUB REPORTS Q1/2016 NET PROFIT OF US$ 154.6 MILLION ATTRIBUTABLE TO ITS SHAREHOLDERS

AUB REPORTS Q1/2016 NET PROFIT OF US$ 154.6 MILLION ATTRIBUTABLE TO ITS SHAREHOLDERS

Ahli United Bank B.S.C. (AUB) reported a net profit attributable to its equity shareholders of US$ 154.6 million for the quarter ended 31 March 2016. The net profit reflected an increase of 5.0% in Q1/2016 as compared to the net profit figure of US$ 147.2 million achieved in Q1/2015. The Q1/2016 net profit also represents a 31.0% improvement over the Q4/2015 trailing quarter reported profit of US$ 118.0 million. The Basic Earnings per Share in Q1/2016 were US 2.3 cents, compared to US 2.2 cents in Q1/2015.

Despite continuing weak economic trends into 2016, AUB continued to grow its operating income underpinned by an effective balance sheet management strategy, with net interest income (NII) rising by 5.5% to US$ 201.3 million during the quarter. Total operating income grew by 6.3% from US$ 263.9 million to US$ 280.5 million. The cost income ratio improved to 28.1% (Q1/2015: 28.5%).

Solid asset quality levels were sustained with the non-performing loans ratio standing unchanged at 1.8% (31 December 2015: 1.8%) while the specific provision coverage ratio stood at 84.0% (31 December 2015: 84.6%). The total provision coverage ratio, inclusive of collective impairment provisions, was 181.8% as at 31 March 2016 (31 December 2015: 181.9%).

The Group’s Return on Average Equity (ROAE) for Q1/2016, increased to 17.6%, compared to the ROAE of 17.5% achieved in the first quarter of 2015. Return on Average Assets also increased to 2.0% for Q1/2016 (Q1/2015: 1.9%).

Mr. Hamad Al-Humaidhi, AUB Chairman, commented: “AUB continued its strong and steady performance in Q1/2016 underpinned by the viability of the Bank’s core regional business model based on diversification and cross border flows”.

“In March 2016, the Bank succeeded in expanding its geographic reach further by opening its fully owned subsidiary Ahli United Bank Limited (AUBL) in Dubai International Financial Centre (DIFC), UAE. AUBL is the first bank in the GCC region to receive the Category 1 License from Dubai Financial Services Authority (DFSA). This launch enables AUB to offer corporate banking, private banking, wealth management, trade finance, treasury and cross-border financial products and services to its clients based in the UAE as well as in the wider Middle East region. All these products and services are available on a conventional as well as a Shari’a compliant basis through AUBL. The launch of AUBL represents an important addition to the AUB group banks and a key step forward in pursuing its defined strategy of targeted regional expansion, with emphasis on increasing cross border business flows. ” added Mr. Al-Humaidhi.

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AUB NET PROFIT SURGES BY 11.3% TO US$ 537.2 MILLION IN 2015

AUB NET PROFIT SURGES BY 11.3% TO US$ 537.2 MILLION IN 2015

Ahli United Bank B.S.C. (AUB) reported a record net profit attributable to its equity shareholders of US$ 537.2 million for the year 2015, representing a growth of 11.3% compared to a net profit of US$ 482.5 million in 2014. The net profit in Q4/2015 was US$ 118.0 million as compared to US$ 106.2 million in Q4/2014.

The positive operating results of AUB were primarily driven by the growth in its core operating earnings across its major lines of business and markets, despite the continuing general weakness in economic trends regionally and globally, witnessed during 2015. The surge in operating income was underpinned by a 6.7% rise in net interest income (NII) to US$ 814.7 million despite the prevalence of very low absolute interest rate levels. The NII increase was achieved through a moderated increase in lending volumes as well as by a prudent deployment of liquidity in non-trading high quality investments within a conservative and diversified risk framework. The result was also complemented through focused liability cost management which improved NII margins. Total operating income grew by 4.9% to reach US$ 1,091.9 million (2014: US$ 1,041.3 million).The higher operating income and disciplined cost culture across the AUB Group further improved the operating cost income ratio to 28.3% (2014: 29.2%).

The Group’s total assets increased by 1.6% to reach US$ 34.0 billion at 31 December 2015 from US$ 33.4 billion as at 2014 year-end. The growth in total assets was primarily due to a 4.8% growth in the loans and advances portfolio to reach US$ 19.4 billion (31 December 2014: US$ 18.5 billion). Balanced credit growth was supported by a 2.1% growth in customer deposits to reach US$ 23.5 billion (31 December 2014: US$ 23.0 billion). The non-performing loan ratio reduced to 1.8% as at 31 December 2015 (31 December 2014: 2.0%) with a healthy specific provision coverage ratio of 84.6% (31 December 2014: 83.8%). The total provision coverage ratio, inclusive of collective impairment provisions, was also increased to 181.9% as at 31 December 2015 (31 December 2014: 159.4%) as part of the AUB Group’s effort to enhance its risk coverage position.

Through improved earnings and judicious cost management, return on Average Equity increased to 16.0% (2014: 15.2%) while the return on Average Assets increased to 1.7% (2014: 1.6%).

The resultant basic earnings per share were US cents 8.1 for the year ended 31 December 2015 (2014: US cents 7.6). Given the challenging business environment, the Board of Directors has recommended unchanged distribution comprising a cash dividend of US cents 4.5 per share (2014: US cents 4.5) together with a bonus ordinary share issue of 5% (2014: 5%).

Mr. Hamad Al-Humaidhi, AUB Chairman, commented: ”AUB continued its robust performance in 2015 crossing for the first time US$ 500 million benchmark in terms of operating net profit, in the face of strong economic headwinds. The 2015 result is a testament to AUB’s well-managed business model based on diversification, targeting of cross border flows and selective growth initiatives to increase operating income that continue to serve the Bank well. AUB is also proud to have successfully completed a US$ 400 million issue of Additional Tier 1 Perpetual Basel III Compliant Capital Securities in April 2015 at a very competitive pricing under very challenging market conditions. This represents an important step forward in terms of the evolution and diversification of the Group’s capital structure.“

”While risks to the global economic outlook remain high and a continuing slowdown in regional economies looms large, AUB remains cautiously confident of its resilience and ability to maintain its performance given its strong underlying operating fundamentals and its prudent, proactive management of risks and costs.“ added Mr. Al-Humaidhi.

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AHLI UNITED BANK B.S.C. NET PROFIT SURGES BY 11.4% TO US$ 419.2 MILLION FOR THE PERIOD ENDED 30 SEPTEMBER 2015

AHLI UNITED BANK B.S.C. NET PROFIT SURGES BY 11.4% TO US$ 419.2 MILLION FOR THE PERIOD ENDED 30 SEPTEMBER 2015

Ahli United Bank B.S.C. (AUB) reported a net profit attributable to its equity shareholders of US$ 419.2 million for the nine months ended 30 September 2015, an increase of 11.4% as compared to US$ 376.3 million achieved in YTD Q3/2014. Adjusted for net exceptional gain of US$ 24.2 million on sale of investments, YTD Q3/2015 net profit is US$ 395.0 million, a 5.0% increase over the same period reported profit in 2014. The net profit achieved for the third quarter of 2015 was US$ 140.9 million, a 23.8% increase over the 2014 third quarter reported profit of US$ 113.8 million. The Basic Earnings per Share in YTD Q3/2015 increased to US 6.5 cents, from US 6.0 cents in YTD Q3/2014.

The growth in the operating results of AUB was underpinned by the growth in its core banking income lines. Net interest income grew by 4.5% from US$ 578.7 million to US$ 604.8 million, while fee income grew by 6.0% from US$ 111.5 million to US$ 118.2 million. The bank’s focus on adopting a judicious “intelligent spend” approach, improved the cost income ratio to 27.5% (YTD Q3 / 2014: 28.9%). This surge in operating profit was achieved despite the continued challenging economic regional and international environment.

Prudent risk management and monitoring sustained its asset quality with the non-performing loans ratio standing at 2.1% (31 December 2014: 2.0%) while the specific provision coverage ratio improved to 84.2% (31 December 2014: 83.8%). Total provision coverage ratio, inclusive of collective impairment provisions, rose to 166.1% as at 30 September 2015 (31 December 2014: 159.4%).

The Group’s Return on Average Equity (ROAE) for YTD Q3/2015 increased to 16.7%, based on improved operating results as compared to 15.9% achieved in the prior period. Return on Average Assets was higher at 1.8% for YTD Q3/2015 (YTD Q3/2014: 1.6%).

Mr. Hamad Al-Humaidhi, AUB Chairman, commented: “AUB continued its robust performance in the first nine months of 2015 even as regional economic activity moderates and international markets continue to be uncertain and volatile. AUB’s sustained growth reflected in the YTD Q3/2015 result is a testament to AUB’s well-managed business model based on diversification and cross border flows and of the success of its selective growth initiatives to increase operating income and mitigate risk challenges in its target markets.”

“Despite expected upcoming challenges from an unstable global economy and its effect on AUB’s target markets, AUB continues to remain confident of its resilience and ability to maintain its performance given its strong fundamentals and prudent, proactive management of risks and costs. It will continue to seek, identify and tap organic as well as inorganic growth opportunities within an acceptable risk-return framework. ” added Mr. Al-Humaidhi.