AHLI UNITED BANK REPORTS A 17 % INCREASE IN NET PROFITS TO US$ 38.9 MILLION FOR THE FIRST QUARTER OF 2005
Ahli United Bank (AUB) has announced a net profit of US$ 38.9 million for the quarter ended 31 March 2005, an increase of 17 percent over the same period in 2004 (US$ 33.2 million).
Net interest and other income to 31 March 2005 was US$ 60.8 million (2004 – US$ 57.0 million), an increase of 6.6 percent, with a cost-to-income ratio of 32.7 percent (Q1 2004- 34.9 percent). Basic earnings per share was US cents 1.49, compared to US cents 1.28 in the corresponding period last year.
As of 31 March 2005, AUB’s total assets stood at US$ 8.43 billion on an enhanced regulatory capital base of US$ 1,456 million including US$ 443 million of net proceeds raised by issuing 1,000 million Class A preference shares effective 1January 2005. The resultant consolidated risk asset ratio stood at 22.2% well above the minimum regulatory requirements set by the Bahrain Monetary Agency.
“The bank achieved a strong performance in the first quarter of 2005, continuing its track record of increased profitability on a year on year basis since its inception in 2000.These results are in line with our increasing ambitions and financial targets,” said Fahad Al-Rajaan, Chairman of Ahli United Bank.
He added, “We have seen improving performance and volume growth over last year in an environment of intensifying competition in a rising interest rate environment. We remain optimistic in our outlook for the remainder of 2005 and we are working to further enhance our retail, private banking and wealth management, corporate, and treasury activities in the region.”
In addition, he stressed that the achievement underlined the effectiveness of AUB’s business model requiring growth through both the merger and acquisitions and organic routes as evidenced by the results of AUB’s investments in Bank of Kuwait & the Middle East, Ahli Bank and Future Bank.
Mr. Al-Rajaan concluded, “It is our aim to continue enhancing the Bank’s profile and reputation in the Gulf region so that we are recognized as a premier retail, corporate and private banking institution with established OECD asset origination and distribution capabilities.