AHLI UNITED BANK B.S.C. REPORTS A NET PROFIT OF US$ 340.9 MILLION ATTRIBUTABLE TO OWNERS OF THE BANK AND A RETURN ON AVERAGE EQUITY OF 15.3% FOR THE SIX MONTHS ENDED 30 JUNE 2022
Ahli United Bank B.S.C. (AUB) reported a net profit attributable to its equity shareholders of US$ 170.0 million for Q2/2022, which represents a 22.3% increase over the Q2/2021 reported profit of US$ 138.9 million driven by an increase in net interest income as well as fees & commission and investment income and a lower level of net provision charge for credit losses. Basic and Diluted Earnings per Share were US 1.3 cents in Q2/2022 versus US 1.1 cents in Q2/2021. Total comprehensive income attributable to the owners of the bank for Q2/2022 was US$ 113.3 million (Q2/2021: US$ 162.9 million, -30.5%). Net interest income was US$ 218.6 million in Q2/2022 (Q2/2021: US$ 214.7 million, +1.9%) and total operating income was US$ 292.9 million in Q2/2022 (Q2/2021: US$ 261.2 million, +12.1%).
AUB reported a net profit attributable to its equity shareholders of US$ 340.9 million for the first half of year 2022 which represents a 14.2% increase over the H1/2021 reported profit of US$ 298.6 million mainly driven by an increase in net interest income and trading, investment & other income. Basic and Diluted Earnings per Share in H1/2022 were US 2.9 cents, compared to US 2.5 cents in H1/2021. Total comprehensive income attributable to the owners of the bank for H1/2022 was US$ 178.9 million (H1/2021: US$ 337.8 million, -47.0%). Net interest income for H1/2022 was US$ 430.7 million (H1/2021: US$ 421.7 million, +2.2%) primarily achieved through increase in interest earning assets. Total operating income for the H1/2022 was US$ 603.5 million (H1/2021: US$ 552.2 million, +9.3%).
As a result of profitability improvement, Return on Average Equity for H1/2022 increased to 15.3% (H1/2021: 14.6%). The AUB Group’s total assets as at 30 June 2022 increased by 4.7% to US$ 43.9 billion (31 December 2021: US$ 41.9 billion) reflecting prudent balance sheet growth compatible with the prevailing economic environment in its main operating markets. Return on Average Assets also improved to 1.7% for H1/2022 (H1/2021: 1.6%). The Group’s equity attributable to owners at 30 June 2022 decreased by 3.4% to US$ 4.3 billion particularly due to dividend distribution (31 December 2021: US$ 4.5 billion).
The non-performing loans ratio was at 2.5% (31 December 2021: 2.4%) with specific provision coverage of 81.1% (31 December 2021: 83.1%). Provision coverage levels are calculated on a cash provision basis excluding the value of the substantial additional non-cash (real estate and securities) assigned collaterals available against non-performing loans.
The cost to income ratio for H1/2022 was 28.2% (H1/2021: 27.9%) reflecting AUB’s continuing
efforts to enhance operational efficiencies through the progressive roll-out of automation and digitization initiatives as part of the AUB Group’s overall transformation plan.
The AUB Chairman, Mr. Meshal Al Othman, commented “AUB achieved excellent performance in the first half of 2022 in terms of both financial and operational results through robust risk management and intelligent cost control measures and continuing focus on the sourcing of remunerative cross border business flows. Our results demonstrate AUB’s strong ability to deliver sustainable earnings on a consistent basis through its diversified business model across the Gulf and MENA region.”
Mr. Meshal Al Othman also commented that “The offer document received from KFH Kuwait Finance House (KFH) provides an opportunity to our shareholders to consider, in a structured manner, the creation of a major regional banking institution capable of competing more effectively in its existing and new potential markets. This proposed acquisition is in line with the longstanding strategy adopted by AUB’s Board of Directors since inception in 2000, for pursuing inorganic growth in our targeted markets through mergers and acquisitions. The KFH acquisition involves a potential transformational deal to create a Shari’a compliant market leader in the regional and global banking space and to provide a very solid platform for achieving shareholder and corporate aspirations”.
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 a 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) besides the “Best Bank in Bahrain” consistently over the years and the “Most Innovative Bank in the Middle East” (2021) by EMEA Finance.