Ahli United Bank No Comments

AHLI UNITED BANK REPORTS A 25.1% INCREASE IN NET PROFITS TO US$ 78.6 MILLION FOR THE FIRST HALF OF 2005.

Ahli United Bank B.S.C. (AUB) has announced a net profit of US$78.6 million for the first half of 2005, an increase of 25.1 percent over the same period in 2004 (US$ 62.8 million).

Net interest and other income to 30 June 2005 was US$128.3 million (2004 – US$114.9 million), an increase of 11.6 percent, with a cost-to-income ratio of 32.5 percent (2004 – 36.1 percent). Basic earnings per ordinary share was US cents 3.02, compared to US cents 2.42 in the corresponding period last year. Dilutive earnings per ordinary share, adjusted for the impact of the convertible preference share issue, was US cents 2.54 against US cents 2.42 in the corresponding period last year.

As of 30 June 2005, AUB’s total assets stood at US$ 8.8 billion on an enhanced regulatory capital base of US$1.5 billion including US$443 million of net proceeds raised by issuing 1,000 million Class A preference shares effective 1 January 2005. The resultant consolidated risk asset ratio stood at 23.6 percent well above the minimum regulatory requirements set by the Bahrain Monetary Agency.

“The Bank achieved excellent results in the first half of 2005 with good performance across all the Bank’s activities” said Fahad Al-Rajaan, Chairman of Ahli United Bank B.S.C.

He added, “The results in the first half of 2005 are in line with our increasing ambitious and financial targets and reflect the solid progress made by the Bank in developing business lines and expanding client base coupled with volume growth in commercial and retail banking despite a competitive market.”

“We continue to pursue new corporate combination opportunities around the region as part of our efforts to offer a comprehensive range of services to a wider customer base in the Gulf and beyond,” he added.

Mr. Al-Rajaan concluded, “Going forward we will maintain strong focus on cost and risk management, while capturing revenue growth opportunities”.