Ahli United Bank No Comments

AUB REPORTS AN H1/2015 PROFIT OF US$ 278.4 MILLION

AUB REPORTS AN H1/2015 PROFIT OF US$ 278.4 MILLION

Ahli United Bank B.S.C. (AUB) reported a net profit attributable to its equity shareholders of US$ 278.4 million for the half year ended 30 June 2015. The net profit reflected an increase of 6.1% in H1/2015 as compared to US$ 262.5 million achieved in H1/2014. The Q2/2015 net profit achieved was US$ 131.2 million, a 4.2% increase over the Q2/2014 reported profit of US$ 125.9 million. The Basic Earnings per Share in H1/2015 were US 4.3 cents, compared to US 4.2 cents in H1/2014.

The operating results of AUB were primarily driven by the growth in its core operating earnings across its major lines of business and markets, despite continuing sluggish economic trends in the first half of the year both in regional and European markets. Net interest income grew by 2.6% from US$ 381.7 million to US$ 391.7 million, while fee income grew by 8.4% from US$ 78.5 million to US$ 85.1 million. The cost income ratio stood at 28.8% (YTD H1 / 2014: 28.5%) reflecting the continuing drive to focus on an intelligent spend approach.

Prudent risk management and monitoring sustained its asset quality with the non- performing loans ratio standing unchanged at 2.0% (31 December 2014: 2.0%) while the specific provision coverage ratio was 81.0% (31 December 2014: 83.8%). Total provision coverage ratio, inclusive of collective impairment provisions, rose to 160.5% as at 30 June 2015 (31 December 2014: 159.4%).

The Group’s Return on Average Equity (ROAE) for H1/2015 was maintained at 16.7%, similar to H1/14. Return on Average Assets was higher at 1.8% for H1/2015 (H1/2014: 1.7%).

Mr. Hamad Al-Humaidhi, AUB Chairman, commented: “AUB’s strong performance for the first half of 2015 against the backdrop of weak regional economic activity and continuing international uncertainty is very satisfactory. The Bank 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. This represents an important step forward in terms of the evolution and diversification of the Group’s capital structure”.

“The strong results for H1/2015 represent clear testimony of 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.” added Mr. Al-Humaidhi.

Ahli United Bank No Comments

AUB’S SHAREHOLDERS APPROVE 18% CASH AND 5% STOCK DIVIDENDS; ELECT NEW BOARD OF DIRECTORS

AUB’S SHAREHOLDERS APPROVE 18% CASH AND 5% STOCK DIVIDENDS; ELECT NEW BOARD OF DIRECTORS

Ahli United Bank B.S.C. (AUB) reported a net profit attributable to its equity shareholders of US$ 147.2 million for the quarter ended 31 March 2015. The net profit reflected a surge of 7.8% in Q1/2015 as compared to US$ 136.6 million achieved in Q1/2014. The Q1/2015 net profit also represents a 38.6% improvement over the Q4/2014 trailing quarter reported profit of US$ 106.2 million. The Basic Earnings per Share in Q1/2015 was US 2.3 cents, compared to US 2.2 cents in Q1/2014.

Despite continuing sluggish economic trends into 2015, AUB continued to grow its operating income which was underpinned by maintaining its net interest margins through the judicious deployment of funds combined with effective liquidity management. Fee income grew by 5.6% from US$ 39.2 million to US$ 41.5 million. The cost income ratio stood at 28.5% (YTD Q1 / 2014: 27.8%).

Solid asset quality levels were sustained with the non-performing loans ratio standing unchanged at 2.0% (31 December 2014: 2.0%) while the specific provision coverage ratio improved to 86.2% (31 December 2014: 83.8%). The total provision coverage ratio, inclusive of collective impairment provisions, rose to 163.5% as at 31 March 2015 (31 December 2014: 159.4%).

The Group’s Return on Average Equity (ROAE) for Q1/2015, increased to 17.5%, compared to the ROAE of 17.2% achieved in the first quarter of 2014. Return on Average Assets was maintained at 1.9% for Q1/2015 (Q1/2014: 1.9%).

Mr. Hamad Al-Humaidhi, AUB Chairman, commented: “AUB continued its strong and steady performance in Q1/2015 underlying the viability of the Bank’s core regional business model based on diversification and cross border flows and the success of its selective growth initiatives to increase operating income and mitigate risk challenges in its target markets”.

“In April 2015, the Bank successfully completed a US$ 400 million issue of Additional Tier 1 Perpetual Basel III Compliant Capital Securities. This represents an important step forward in terms of the evolution and diversification of the Group’s capital structure and will provide tangible support to organic and inorganic business plans. This successful issue represents a clear testimony of AUB’s credentials among prime international and regional investors as a well-managed, successful and creditworthy financial institution.” added Mr. Al-Humaidhi.

Ahli United Bank No Comments

AUB’S SHAREHOLDERS APPROVE 18% CASH AND 5% STOCK DIVIDENDS; ELECT NEW BOARD OF DIRECTORS

AUB’S SHAREHOLDERS APPROVE 18% CASH AND 5% STOCK DIVIDENDS; ELECT NEW BOARD OF DIRECTORS

The Annual General Meeting of Ahli United Bank B.S.C has approved the distribution of a cash dividend of 18% (US$ 4.5 cents per share) together with an ordinary shares bonus of 5% (one share per 20 ordinary shares held) for the financial year ended 31 December 2014. Shareholders registered in the Bank’s share book on 31 March 2015 will be eligible to receive the dividends approved by the Annual General Meeting.

AUB’s shareholders voted to extend for a further two years their 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 any other similar subordinated financial instruments deemed required to support the growth plans of the Bank. The AGM also approved the establishment of a Mandatory Share Purchase Plan and the extension of the existing Employee Share Purchase Plan by the issuance of 150 million shares for this purpose subject to the guidelines set by the Central Bank of Bahrain. These resolutions were adopted at the annual ordinary general meeting and the extraordinary general meeting held today at AUB’s headquarters in Seef under the chairmanship of Acting Chairman, Mr. Mohamed Jassim al-Marzooq.

AUB’s AGM also reviewed and approved the Board of Directors’ Report, Corporate Governance Report, Auditors’ Report and the financial statements for the year ending 31 December 2014.

AUB’s ordinary annual general meeting proceeded to elect eleven members for the Board of Directors:

1. Hamad Meshary Al-Humaidhi
2. Mohammad Jassim Al-Marzooq
3. Rashid Ismail Al-Meer
4. Mohammed Saleh Behbehani
5. Mohammed Fouad Al-Ghanim
6. Adnan AbdulMuhsin Al-Marzouq
7. Abdulla Hamad Al-Sumait
8. Herschel Post
9. Michael G. Essex
10. Luma Mohamed Al-Dakheel
11. Adel. A. El-Labban

Following the election, the new directors have met and unanimously elected Mr. Hamad Al-Humaidhi as the new Chairman of AUB Group.

Commenting on his appointment as Chairman of AUB, Mr. Al-Humaidhi said: “It is a great honour and weighty responsibility to be named Chairman of a leading regional institution such as Ahli United Bank. I am grateful for the shareholders and to my fellow directors on the valued trust and confidence reposed in me. It is also my pleasure to welcome and congratulate the newly elected directors to the Board”.

“Over the years, AUB has gone from strength to strength in its commitment to being a truly pan-regional bank, thanks to a well-defined vision, a stable Board structure, a competent management team and the rigorous implementation of a successful business model. I look forward to working closely with all to ensure the building on such impressive track record, as we all focus on becoming the most reliable and preferred services provider for our retail and customers alike and delivering sustained market-leading returns for our valued shareholders”, Mr. Al-Humaidhi concluded.

Ahli United Bank No Comments

AHLI UNITED BANK REPORTS A NET PROFIT OF US$ 482.5 MILLION AND OPERATING INCOME CROSSES US$ 1 BILLION

AHLI UNITED BANK REPORTS A NET PROFIT OF US$ 482.5 MILLION AND OPERATING INCOME CROSSES US$ 1 BILLION

Ahli United Bank B.S.C. (AUB) reported a record net profit attributable to its equity shareholders of US$ 482.5 million for the year 2014, a growth of 31.7% compared with the net profit of US$ 366.5 million in 2013. The overall 2013 net profit of US$ 579.4 million included an exceptional non-recurring gain of US$ 212.9 million from the sale of its 29.4% stake in its Qatari affiliate. The net profit in Q4/2014 was US$ 106.2 million as compared to US$ 77.2 million in Q4/2013.

AUB’s total operating income crossed US$ 1 billion for the first time since its inception in 2000 with an increase of 8.7% over the US$ 958 million achieved in 2013. This surge in operating income was driven largely by a 7.0% rise in net interest income (NII) to US$ 763.3 million. The NII increase was achieved primarily through higher lending volumes as well as prudent deployment of liquidity in non-trading investments within a risk acceptable framework complemented by focused liability cost management. Fees and other income increased by 13.4% from US$ 245.1 million to US$ 278.0 million. The higher operating income and disciplined cost culture aligned to business needs across the AUB Group further improved the operating cost income ratio to 29.7% (2013: 30.0%).

The Group’s total assets grew by 2.4% to reach US$ 33.4 billion at 31 December 2014 from US$ 32.7 billion as at 2013 year-end. The growth in total assets was primarily due to a 6.7% growth in the loans and advances portfolio to US$ 18.5 billion (31 December 2013: US$ 17.3 billion). This balanced credit growth was underpinned by a 4.4% growth in customer deposits to reach US$ 23.0 billion (31 December 2013: US$ 22.0 billion). Asset quality of the Group improved with the non-performing loan ratio reducing to 2.0% as at 31 December 2014 (31 December 2013: 2.3%) with a specific provision coverage ratio of 83.8% (31 December 2013: 86.1%). The total provision coverage ratio, inclusive of collective impairment provisions, was 159.4% as at 31 December 2014 (31 December 2013: 155.5%).

Core operating return on Average Equity for 2014 increased to 15.2% (2013: 13.4%) and the core operating return on Average Assets for 2014 increased to 1.6% (2013: 1.3%), adjusted for exceptional non-recurring items.

The resultant basic earnings per share were US cents 8.0 for the year ended 31 December 2014 (2013: US cents 10.0). Given the excellent results achieved, the Board of Directors has recommended a cash dividend of US cents 4.5 per share (2013: US cents 4.5) together with a bonus ordinary share issue of 5% (2013: 5%).

”AUB’s diversified business model combined with its growing cross border business flows and prudent deployment of liquidity have resulted in the total operating income surging past the US$ 1 billion mark. The increase in the operating net profit bears testament to AUB’s strong underlying business fundamentals and to its effective control framework and resilient business model. While operating challenges remain, we start 2015 with clear plans and goals to improve on our past performances and we will continue to strive to meet the aspirations of all our stakeholders“, commented Mohammad Jassim Al-Marzooq, Acting Chairman, AUB.

Ahli United Bank No Comments

AUB NAMES MOHAMMED AL-MARZOUQ AS ACTING CHAIRMAN

AUB NAMES MOHAMMED AL-MARZOUQ AS ACTING CHAIRMAN

The Board of Directors of Ahli United Bank B.S.C has approved the appointment of Mr. Mohammed Jassim Al-Marzouq, currently Deputy Chairman, as Acting Chairman of the Board until the convening of the 2015 Annual General Meeting of the Bank and completion of the scheduled re-election of the AUB Board of Directors.

Ahli United Bank No Comments

AHLI UNITED BANK B.S.C. REPORTS A PROFIT OF US$ 376.3 MILLION FOR THE PERIOD ENDED 30 SEPTEMBER 2014

AHLI UNITED BANK B.S.C. REPORTS A PROFIT OF US$ 376.3 MILLION FOR THE PERIOD ENDED 30 SEPTEMBER 2014

Ahli United Bank B.S.C. (AUB) reported a net profit attributable to its shareholders of US$ 376.3 million for the nine months ended 30 September 2014. This reflected an increase of 30.1% over the core net profit of US$ 289.3 million achieved in YTD Q3/2013. The overall YTD Q3/2013 result of US$ 502.2 million included an exceptional non-recurring gain of US$ 212.9 million from the sale of its 29.4% stake in its Qatari affiliate. The Q3/2014 net profit achieved was US$ 113.8 million, a 14.8% increase over the Q3/2013 reported profit of US$ 99.1 million. The Basic Earnings per Share in YTD Q3/2014 were US 6.3 cents, compared to US 5.0 cents, excluding the exceptional gain, for the nine months ended Q3/2013.

The operating results of AUB were primarily driven by growth in its core operating earnings across its major markets. During the period, the improvement in the net interest margin together with prudent growth in risk assets resulted in a 10.3% increase in Net Interest Income from US$ 524.6 million to US$ 578.7 million. Diversified business initiatives and successful client acquisition initiatives contributed to a 4.5% growth in fee income from US$ 106.7 million to US$ 111.5 million. The YTD Q3/2014 cost income ratio improved to 28.4% (YTD Q3/2013: 29.6%) largely as a result of intelligent spend aligned to business needs without affecting the ability to efficiently service clients and to invest in future growth.

The Group‘s total assets rose to US$ 34.1 billion, an increase of 4.5% over the 31 December 2013 position. This increase was driven by a US$ 1.4 billion (+8.2%) increase in the loan portfolio to reach US$ 18.7 billion by 30 September 2014. The growth in loan and advances was funded by an increase in customers‘ deposits to US$ 24.4 billion as at 30 September 2014 (31 December 2013: US$ 22.0 billion). Asset quality remains solid with the non-performing loans ratio standing at 2.1% (31 December 2013: 2.3%) while the specific provision coverage ratio improved to 91.5% (31 December 2013: 86.1%). The total provision coverage ratio, inclusive of collective impairment provisions, rose to 172.4% as at 30 September 2014 (31 December 2013: 155.5%).

The AUB Group‘s Return on Average Equity (ROAE) for YTD Q3/2014 increased to 15.9% based on the improved operating results, compared to the operating ROAE, excluding the exceptional gain, of 14.2% achieved in the prior period. Return on Average Assets, calculated on the same basis, was also higher at 1.6% for YTD Q3/2014 (YTD Q3/2013: 1.4%).

”AUB‘s diversification in its major operating markets and its continued success in expanding cross border business flows between these markets have helped it achieve a robust growth in sustainable core operating revenues, while maintaining solid asset quality parameters.“ said Fahad Al-Rajaan, Chairman, AUB. He added that ”AUB continues to seek opportunities, where viable, to expand its banking franchise further through value accretive organic or inorganic means. This entails a continuous, dynamic and focused approach to ensure the effective deployment of capital resources across the AUB Group‘s current and targeted markets.“

Ahli United Bank No Comments

AHLI UNITED BANK B.S.C. REPORTS H1/2014 PROFIT OF US$ 262.5 MILLION

AHLI UNITED BANK B.S.C. REPORTS H1/2014 PROFIT OF US$ 262.5 MILLION

Ahli United Bank B.S.C. (AUB) reported a net profit attributable to its shareholders of US$ 262.5 million for the half year ended 30 June 2014. This reflected an increase of 38.1% over the core net profit of US$ 190.1 million achieved in H1/2013. The overall H1/2013 result of US$ 403.0 million included an exceptional non-recurring gain of US$ 212.9 million from the sale of its 29.4% stake in its Qatari affiliate. The Q2/2014 net profit achieved was US$ 125.9 million, a 35.1% increase over the Q2/2013 quarter reported profit of US$ 93.2 million. The Basic Earnings per Share in H1/2014 were US 4.4 cents, compared to Basic Earnings per share of US 3.3 cents, adjusted for the exceptional gain in H1/2013.

The operating results of AUB were primarily driven by growth in its core operating earnings across its major markets. The main contributing factor was the improvement in the net interest margins achieved through a combination of prudent deployment of funds in risk assets and an effective strategy for the management of funding costs. This resulted in a 13.7% increase in Net Interest Income from US$ 335.8 million to US$ 381.7 million. Diversified business flows and successful client acquisition initiatives contributed to a 11.7% growth in fee income from US$ 70.3 million to US$ 78.5 million. The YTD H1/2014 cost income ratio improved to 27.8% (YTD H1/2013: 30.3%) contributed by a surge in operating revenues and by the continued successful implementation of the AUB Group‘s disciplined cost culture.

The Group‘s total assets rose to US$ 33.9 billion (+ 3.7%) since 31 December 2013 driven by a US$ 1.3 billion (+7.6%) increase in the loan portfolio to reach US$ 18.6 billion by 30 June 2014. The growth in loan and advances was mainly funded by an increase in customers‘ deposits to US$ 23.1 billion as at 30 June 2014 (31 December 2013: US$ 22.0 billion). Asset quality showed improvement over year end 2013 with the non-performing loans ratio standing at 2.1% (31 December 2013: 2.3%) while the specific provision coverage ratio improved to 89.2% (31 December 2013: 86.1%). The total provision coverage ratio, inclusive of collective impairment provisions, rose to 166.1% as at 30 June 2014 (31 December 2013: 155.5%).

The improved operating results positively impacted the AUB Group‘s Return on Average Equity (ROAE) for H1/2014, increasing to 16.7%, compared to the operating ROAE of 14.0% achieved in the first half of 2013, excluding the exceptional gain. Return on Average Assets, calculated on the same basis, was significantly higher at 1.7% for H1/2014 (H1/2013: 1.4%).

”AUB‘s focus on its major operating markets and its strong drive and commitment to expand its cross border business flows between these markets have been instrumental in achieving very strong growth in core operating revenues across its business lines“ said Fahad Al-Rajaan, Chairman, AUB. He added that ”AUB is continuously investing in the future and is well positioned to reap the benefits of its large investments in training and technology to support new products and business initiatives which will be progressively rolled out in the coming period“.

Ahli United Bank No Comments

AHLI UNITED BANK B.S.C. REPORTS A RECORD PROFIT OF US$ 579.4 MILLION FOR 2013

AHLI UNITED BANK B.S.C. REPORTS A RECORD PROFIT OF US$ 579.4 MILLION FOR 2013

Ahli United Bank B.S.C. (AUB) reported a net profit attributable to its equity shareholders of US$ 579.4 million for the year 2013, growth of 72.6% compared with US$ 335.7 million in 2012. This included an exceptional non-recurring gain of US$ 212.9 million on the sale of its 29.4% stake in Ahli Bank Qatar (ABQ). Excluding this item, the operating net profit of the Bank was US$ 366.5 million representing a 25.7% increase over the previous year. The last quarter of 2013 contributed US$ 77.2 million as compared to US$ 71.5 million in Q4/2012.

Operating income increased from US$ 848.7 million to US$ 958.3 million in 2013 (+ 12.9%), driven largely by a rise in net interest income (NII) of 12.1% to US$ 713.2 million (2012: US$ 636.4 million) and a 16.2% growth in fee income from US$ 121.4 million to US$ 141.1 million. The NII increase was achieved through focused liability cost management together with prudent growth in asset volumes within acceptable risk criteria. Increased operating income and disciplined cost culture aligned to business needs across the AUB Group further improved the operating cost income ratio to 30.0% (2012: 31.5%).

The Group’s total assets grew by US$ 2.8 billion (+9.3%) to reach US$ 32.7 billion by 2013 year-end. This is attributable to a 8.3% growth in the loans and advances portfolio to US$ 17.3 billion (31 December 2012: US$ 16.0 billion). Credit growth was funded by a 17.4% growth in customer deposits to reach US$ 22.0 billion (31 December 2012: US$ 18.8 billion). The non-performing loan ratio was 2.6% as at 31 December 2013 (31 December 2012: 2.4%) with a specific provision coverage ratio of 87.6% (31 December 2012: 87.7%). The total provision coverage ratio, inclusive of collective impairment provisions, was 149.4% as at 31 December 2013 (31 December 2012: 149.8%). Shareholders’ equity increased by US$ 0.4 billion (+13.4%) to US$ 3.1 billion.

Return on Average Equity was 20.1% (2012: 13.0%) with Return on Average Assets of 2.0 % (2012: 1.3%). Adjusting for the exceptional non-recurring gain of US$ 212.9 million, Return on Average Equity increased to 13.4% while Return on Average Assets was sustained at 1.3%.

The resultant basic earnings per share was US cents 10.5 for the year ended 31 December 2013 (2012: US cents 6.1). Given the excellent results achieved, the Board of Directors has recommended a cash dividend of US cents 4.5 per share (2012: US cents 4.0) together with a bonus ordinary share issue of 5% (2012: 5%).

During the year, the International Finance Corporation Capitalization (Equity) Fund (“IFC Fund”) accelerated conversion of its holding in AUB’s US$125 million Mandatorily Convertible Preference Shares (MCPS) into 167,045,454 new AUB common shares. IFC Fund’s decision to exercise the conversion option prior to the mandatory conversion date represented a strong vote of confidence in the solid regional fundamentals of AUB and in its future business and growth prospects.

Standard & Poor’s Rating Services also raised its long-term counterparty credit rating on AUB from “BBB” to “BBB+” with a Stable Outlook. This reflects AUB’s strong geographical diversification and operating resilience.

“AUB has managed to deliver a very strong set of results through its focused development of business opportunities and its prudent and pro-active management of risks. Of particular satisfaction was the 25.7% surge in net profits, excluding the non-recurring impact of the Qatari affiliate stake sale. These results underpin the solidity of our business model, and AUB continues to remain confident of its ability to maintain its performance given its strong underlying fundamentals”, commented Fahad Al-Rajaan, Chairman, AUB.

Ahli United Bank No Comments

S&P RAISES THE LONG TERM CREDIT RATING OF AHLI UNITED BANK TO ‘BBB+’

S&P RAISES THE LONG TERM CREDIT RATING OF AHLI UNITED BANK TO ‘BBB+’

Ahli United Bank B.S.C (AUB) has announced that on 19th December 2013 Standard & Poor’s, the world’s leading source of credit ratings, raised its long-term counterparty credit rating on the bank from “BBB” to “BBB+” stable.

Fahad Al-Rajaan, Chairman of Ahli United Bank said, “The upgrading of AUB long term credit rating to BBB+ stable reflects the underlying strength of AUB Group and is a strong endorsement for its regional business model which has proven to be resilient and diversified over the years.”

Ahli United Bank No Comments

AHLI UNITED BANK REPORTS A RECORD PROFIT OF US$ 502.2 MILLION FOR PERIOD ENDED 30 SEPTEMBER 2013

AHLI UNITED BANK REPORTS A RECORD PROFIT OF US$ 502.2 MILLION FOR PERIOD ENDED 30 SEPTEMBER 2013

Ahli United Bank B.S.C. (AUB) reported a net profit attributable to its equity shareholders of US$ 502.2 million for the nine months ended 30 September 2013. This included an exceptional gain of US$ 212.9 million on the sale of its 29.4% stake in Ahli Bank Qatar (ABQ). Core earnings increased by 9.5% to US$ 289.3 million compared to YTD 30 September 2012 net profit of US$ 264.2 million. Q3/2013 net profit was 8.6% higher at US$ 99.1 million compared to US$ 91.3 million for Q3/2012.The Basic Earnings per Share were US 9.2 cents, compared to US 4.8 cents achieved in Q3/2012. The resultant adjusted Operating Basic Earnings per share was US 5.3 cents excluding the exceptional gain.

The operating income of the Group increased from US$ 660.9 million to US$ 700.8 million in YTD 30 September 2013 (+ 6.0%), driven largely by growth in net interest income (NII) by 11.7% to US$ 524.6 million (Q3/2012: US$ 469.6 million) and a 10.3% growth in fee income from US$ 96.7 million to US$ 106.7 million. The NII increase was achieved through effective asset liability management measures undertaken to reduce funding costs and a prudent increase in asset volumes within acceptable risk criteria thereby improving core operating income. The cost income ratio was contained at 29.6% (Q3 / 2012: 29.7%).

The Group’s total assets rose by US$ 1.9 billion (+ 6.5%) to US$ 31.8 billion since 31 December 2012. Besides net equity accretion by US$ 0.3 billion during the current period, the total assets increase was funded by incremental customers’ deposits of US$ 3.9 billion (+21.8%) to reach US$ 22.2 billion as at 30 September 2013, with the surplus liquidity utilized to reduce money market deposits by US$ 1.2 billion and repo borrowings by US$ 1.1 billion. On the assets front, the loans portfolio grew by US$ 1.2 billion (+7.7%). The non-performing loan ratio was 2.6% as at 30 September 2013 (31 December 2012: 2.4%) and the specific provision coverage ratio as at 30 September 2013 stood at 89.4% (31 December 2012: 87.7%). The total provision coverage ratio, inclusive of collective impairment provisions, was 150% as at 30 September 2013 (31 December 2012: 150%), as part of AUB’s ongoing prudent risk management strategy.

The Group’s Operating Return on Average Equity for the period ended 30 September 2013, excluding the exceptional gain, was higher at 14.2%, compared to 13.3% achieved in the prior period. Return on Average Assets, on the same basis, was higher at 1.4% for Q3/2013 (Q3/2012: 1.3%).

Given AUB’s solid financial and operational performance, the International Finance Corporation Capitalization Fund (“IFC Fund”) has, at its option, accelerated the conversion of its investment of US$ 125 million in AUB’s Mandatorily Convertible Preference Shares (MCPS) into AUB common shares. Subsequent to 30 September 2013, the MCPS was converted into AUB common shares at an effective conversion price of US 74.83 cents per share, translating into the issue of 167,045,454 additional AUB common shares. Post conversion, the IFC Fund has a 2.95% shareholding in AUB.

“AUB’s resilient performance in a challenging operating environment is reflected in its continuing healthy growth in operating profit which grew by around 9.5% during the current period. This bears testament to the strength and diversification of the AUB Group business model.” said Fahad Al-Rajaan, Chairman, AUB.

Mr. Fahad Al Al-Rajaan, AUB Chairman further added that, “IFC Fund’s decision to exercise the conversion option prior to the mandatory conversion date at a price in excess of prevailing market price is a strong vote of confidence in the solid fundamentals of AUB and its regional business strategy.”