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AHLI UNITED BANK B.S.C. REPORTS A NET PROFIT OF US$ 298.6 MILLION AND A RETURN ON AVERAGE EQUITY OF 13.8% FOR THE SIX MONTHS ENDED 30 JUNE 2021

AHLI UNITED BANK B.S.C. REPORTS A NET PROFIT OF US$ 298.6 MILLION AND A RETURN ON AVERAGE EQUITY OF 13.8% FOR THE SIX MONTHS ENDED 30 JUNE 2021

Ahli United Bank B.S.C. (AUB) reported a net profit attributable to its equity shareholders of US$ 138.9 million for Q2/2021, which represents a 13.9% increase over the Q2/2020 reported profit of US$ 122.0 million driven by an increase in net interest income and lower level of provisioning. The Basic and Diluted Earnings per Share were US 1.2 cents in Q2/2021 versus US 1.0 cents in Q2/2020. Comprehensive income attributable to the owners of the bank for Q2/2021 was US$ 162.9 million (Q2/2020: US$ 194.3 million, -16.1%). Net interest income was US$ 214.7 million in Q2/2021 (Q2/2020: US$ 192.9 million, +11.3%) and total operating income was US$ 261.2 million in Q2/2021 (Q2/2020: US$ 256.8 million, +1.7%).

AUB reported a net profit attributable to its equity shareholders of US$ 298.6 million for the first half of year 2021 which represents a 1.7% increase over the H1/2020 reported profit of US$ 293.4 million mainly driven by an increase in net interest margins and lower provisioning requirements given the exceptional precautionary provisions raised in H1/2020 to adjust with the heightened levels of macro-economic and sectoral risks following the out-break of the Covid-19 pandemic. The Basic and Diluted Earnings per Share in H1/2021 were US 2.8 cents, compared to US 2.7 cents in H1/2020. Comprehensive income attributable to the owners of the bank for H1/2021 was US$ 337.8 million (H1/2020: US$ 157.3 million, +114.7%). Net interest income for H1/2021 was US$ 421.7 million (H1/2020: US$ 406.7 million, +3.7%) primarily due to improved spreads, reduced liquidity premia and stable market conditions. Total operating income for the H1/2021 was US$ 552.2 million (H1/2020: US$ 575.6 million, -4.1%).

The Group’s equity attributable to owners at 30 June 2021 increased by 4.8% to US$ 4.2 billion (31 December 2020: US$ 4.0 billion). Return on Average Equity for H1/2021 increased to13.8% (H1/2020: 13.6%). The AUB Group’s total assets as at 30 June 2021 marginally increased (+1.0%) to US$ 40.5 billion (31 December 2020: US$ 40.1 billion) reflecting prudent balance sheet growth compatible with prevailing operating environment in its main markets. Return on Average Assets was sustained at 1.6% for H1/2021 (H1/2020: 1.6%).

The non-performing loans ratio was lower at 2.5% (31 December 2020: 2.6%) with specific provision coverage of 83.9% (31 December 2020: 85.9%). Provision coverage levels are calculated on a cash provision basis excluding the value of the substantial additional non-cash (real estate and securities) collaterals available against non-performing loans.

The cost to income ratio for H1/2021 was 27.9% (H1/2020: 27.4%) reflecting AUB’s entrenched intelligent spend approach and the impact of the operational efficiencies achieved and digitization initiatives as part of the AUB group’s overall transformation plan.

The AUB Chairman, Mr. Meshal Al Othman, commented “Global and regional economies are showing signs of recovery encouraged by the progressive roll-out of vaccines for Covid-19. Uncertainty remains due to the risk of new mutant waves and their implications on different countries which are gradually opening up the free movement of people locally and internationally. Against the backdrop of the still evolving pandemic, AUB achieved very satisfactory performance in the first half of 2021 and is carefully planning its next steps for the balance of the year”.

He added “Despite the continuing general volatility, the AUB group took important steps in advancing its strategic agenda by increasing its stake in AUB Egypt from 85.5% to 95.7% through a share tender offer and through raising a very successful heavily oversubscribed US$ 600 million Additional Tier -1 Capital issue at AUB Kuwait.”

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 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).

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AHLI UNITED BANK B.S.C. REPORTS A NET PROFIT OF US$ 159.6 MILLION ATTRIBUTABLE TO OWNERS OF THE BANK FOR THE PERIOD ENDED 31 MARCH 2021

AHLI UNITED BANK B.S.C. REPORTS A NET PROFIT OF US$ 159.6 MILLION ATTRIBUTABLE TO OWNERS OF THE BANK FOR THE PERIOD ENDED 31 MARCH 2021

Ahli United Bank B.S.C. (AUB) reported a net profit attributable to its equity shareholders of US$ 159.6 million for Q1/2021 (Q1/2020: US$ 171.4 million, -6.9%) primarily due to lower net interest income driven by low-key benchmark interest rates and reduced activity based fees & commission and other income resulting from the impact of the Covid-19 pandemic. The Basic and Diluted Earnings per Share were US 1.6 cents in Q1/2021 versus US 1.7 cents in Q1/2020. Comprehensive income attributable to the owners of the bank for Q1/2021 was US$ 174.8 million (Q1/2020: US$ -37.0 million). Net interest income was US$ 207.0 million in Q1/2021 (Q1/2020: US$ 213.8 million, -3.2%) and total operating income was US$ 291.0 million in Q1/2021 (Q1/2020: US$ 318.7 million, -8.7%). Meanwhile, net interest income and total operating income improved by 3.8% and 0.7% compared to the trailing Q4/2020 quarter with improved core interest and fee income streams.

Non-performing loans ratio stood at 2.7% (31 December 2020: 2.6%) with specific provision coverage of 85.2% (31 December 2020: 85.9%). Provision coverage levels are calculated on a cash provision basis excluding the value of the additional significant non-cash (real estate and securities) collateral available against non-performing loans.

The cost to income ratio was maintained at 27.7% (Q1/2020: 27.1%) reflecting AUB’s continuing cost discipline and well entrenched intelligent spend approach achieved through streamlining of processes and leveraging its on-going digital transformation initiatives.

The Group’s equity attributable to owners at 31 March 2021 increased by 1.2% to US$ 4.1 billion (31 December 2020: US$ 4.0 billion). Return on Average Equity for Q1/2021 was 15.0% (Q1/2020: 15.6%). The AUB Group’s total assets at 31 March 2021 was marginally lower (-1.6%) to US$ 39.4 billion (31 December 2020: US$ 40.1 billion) reflecting prudent balance-sheet management under subdued operating and funding conditions. Return on Average Assets was at 1.7% for Q1/2021 (Q1/2020: 1.9%).

Mr. Meshal Al Othman, AUB Chairman, commented “While governments across the world are in various stages of rolling out their mass vaccination programs, global and regional economies are still being impacted by the resurgence of new virus variants which adversely affect business confidence and delay recovery efforts. AUB continues to navigate these challenging market conditions in a balanced and structured manner and its results reflect its conservative stance in terms of risk assessment and management.”

“AUB will continue to focus on providing a safe operating environment for all staff, clients and counterparties, on building a seamless remote capability through its existing digital initiatives to transact its business client needs and on protecting its core earnings capacity and multi country franchise until business as usual conditions can be restored”.

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AUB Named Best Bank in Bahrain 2021 by Global Finance

AUB Named Best Bank in Bahrain 2021 by Global Finance

Ahli United Bank (AUB) has been named the Best Bank in Bahrain for 2021 by Global Finance, the leading international financial publication. This is the 16th consecutive year AUB has won this prestigious award from the reputed publication which is headquartered in New York, with offices around the world.

AUB was awarded the Best Bank by Global Finance based on a number of criteria including growth in assets, profitability, geographic reach, strategic relationships, new business development and innovation in products etc. and following extensive consultations of the publication with corporate financial executives, bankers and banking consultants, and analysts throughout the world.

Mr. Meshal Al Othman, AUB Chairman, stated “It is very rewarding to see AUB consistently recognized as the Best Bank by the prestigious publications. This is a testament to the bank’s strong financial performance and sustained excellent track record over the past years. AUB is benefiting being at the forefront of the digital shift, coupled with its superior customer-centric approach, and responsiveness to clients’ requirements. The fact that we have achieved best bank award during one of the toughest years is a recognition of our strong underlying fundamentals, continued resilience and ability to navigate a very challenging unprecedented environment.”

This award marks the latest addition to a long string of recent accolades the Bank has garnered from Global Finance and other leading publications, which include Best Global Network Bank in GCC 2020 by Capital Finance International; Best Local Bank in Bahrain 2020 by EMEA Finance; Outstanding Private Bank in Middle East 2020 by Private Banker International; Best FX Provider in Bahrain 2021 by Global Finance; Private Bank of the Year in Bahrain 2020 by PWM/The Banker to name but a few.

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Ahli United Bank’s AGM Approves 5% Cash Dividend and 5% Bonus Share Issue

Ahli United Bank’s AGM Approves 5% Cash Dividend and 5% Bonus Share Issue

Ahli United Bank B.S.C held its Annual General Meeting (AGM) and its Extraordinary General Meeting (EGM) on Wednesday, 31 March 2021. The meetings were held virtually due to COVID-19 in compliance with the relevant health directives. The representatives of the Central Bank of Bahrain, Ministry of Commerce, Industry & Tourism of the Kingdom of Bahrain, and Ernst & Young were in attendance.

The AUB AGM approved the recommendation by the Board of Directors to distribute cash dividends for 2020 at 5% of par value (US 1.25 cents per ordinary share), totalling US$ 120.6 million in cash, together with a bonus share issue of 5% of the issued capital (one share per 20 ordinary shares), as well as the transfer of US$ 284.4 million as retained earnings for the next year in support of the Bank’s capital and funding base. The Bank’s shareholders further ratified the decision to reduce the number of board members from ten to the current level of nine, in addition to the reappointment of the Sharia Advisory and Supervisory Board overseeing the group’s Sharia compliance activities for a new term of three years, ending on 31 March 2024 and expressed their deep appreciation for their efforts and contribution.

Upon the AGM’s closing, the EGM was convened and approved the increase of an authorised capital from US$ 2.5 billion to US$ 3 billion, and the increase in issued and paid-up capital arising from the issuance of new bonus shares totalling 482,594,435 shares. The EGM further approved the extension, for a further two years, of their standing authorisation for the Board of Directors to decide on the timing, pricing and other terms of issuance of up to US$ 4 billion in bonds, loans, and other subordinated or capital equivalent financial instruments, as deemed necessary, to support the funding and capitalisation requirements of the AUB Group.

Commenting on the Bank’s performance over the past year, Chairman, Mr Meshal AbdulAziz Alothman said: “Throughout 2020, the world witnessed a major global health crisis that continues to have a high human cost and enormous economic repercussions. In the GCC, this was exacerbated by oil prices plummeting to their lowest levels in decades, which doubled the shock to the markets and has had a deep negative impact on various economic activities and sectors. The banking sector was not an exception.”

“Despite these unprecedented challenges and the general or partial closures that continued for long periods in our markets, the Bank was able to overcome the ramifications of the crisis, ending this unusual year with a net profit of US$ 452.2 million, driven by operating revenue streams from our major markets that totalled over US$ 1.1 billion. It is worth noting that these profit levels are among the best compared to other regional banks for the year 2020, and have provided the necessary support for the Board of Directors’ recommendation to distribute 5% in cash dividends and 5% in bonus shares, continuing our uninterrupted track record of dividend distributions to our shareholders for the past twenty years. Our dividend payout decision also took fully into account the need for strengthening our capital and funding base going forward”, he added.

Mr Alothman also pointed out that the Bank is reaping the rewards of its prudent policies over the years, together with the flexibility guaranteed by its business model based on diversifying markets and service platforms, assisted by its accumulated expertise and experience in efficiently managing crises. As a result, the Bank’s total assets stayed above the threshold of US$ 40 billion, with little change from 2019, supported by stable customer deposits of more than US$ 25 billion, forming the cornerstone underpinning a high-quality financing portfolio of more than US$ 20 billion. This was supported on a solid capital base of shareholder equity that remained above the US$ 4 billion mark as at the end of 2020.

The Chairman emphasised that today – a year from the onset of the crisis – the Bank is in a strong position, and continues to take all measures and preparations that take into account multiple scenarios and variables of the crisis to mitigate identified and potential risks. The Bank is also steadily moving forward in the implementation of its comprehensive transformation plans, which aim to resume growth on a firmer and more diversified foundation and at a sustainable pace as soon as the operating environment normalizes.

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AHLI UNITED BANK B.S.C. REPORTS A NET PROFIT OF US$ 452.2 MILLION ATTRIBUTABLE TO OWNERS OF THE BANK FOR THE YEAR ENDED 31 DECEMBER 2020

AHLI UNITED BANK B.S.C. REPORTS A NET PROFIT OF US$ 452.2 MILLION ATTRIBUTABLE TO OWNERS OF THE BANK FOR THE YEAR ENDED 31 DECEMBER 2020

Ahli United Bank B.S.C. (AUB) reported a net profit attributable to its equity shareholders of US$ 42.9 million for Q4/2020 (Q4/2019: US$ 172.1 million, -75.1%) primarily due to lower net interest income and higher precautionary provisioning attributable to Covid-19 pandemic. The Basic and Diluted Earnings per Share were US 0.2 cents in Q4/2020 versus US 1.6 cents in Q4/2019. Comprehensive income attributable to the owners of the bank for Q4/2020 was US$ 47.9 million (Q4/2019: US$ 194.5 million, -75.4%). Net interest income was US$ 199.4 million in Q4/2020 (Q4/2019: US$ 228.8 million, -12.8%) and total operating income was US$ 289.0 million in Q4/2020 (Q4/2019: US$ 316.2 million, -8.6%).

AUB reported a net profit attributable to its equity shareholders of US$ 452.2 million for the full year 2020 (2019: US$ 730.5 million, -38.1%). The Basic and Diluted Earnings per Share in 2020 were US 4.3 cents, compared to US 7.2 cents in 2019. Comprehensive income attributable to the owners of the bank for the full year 2020 was US$ 334.9 million (2019: US$ 772.3 million, -56.6%). Net interest income for 2020 was US$ 799.4 million (2019: US$ 951.5 million, -16.0%). Total operating income for the full year was US$ 1,111.9 million (2019: US$ 1,235.5 million, -10.0%).

The steep decline in US dollar benchmark interest rates by the Fed was followed by similar rate movements in all AUB’s key operating markets which adversely affected interest earnings. Subdued economic activity levels also hit income generated from trade finance, asset management and other fee generating activities which impacted income from fees & commissions.

The Bank’s cost of risk was impacted by the raising of incremental gross Stage 1 and Stage 2 provisions taken on performing risk exposures as a precautionary measure against the evolving and uncertain implications of the current pandemic in accordance with IFRS-9. Net provision charges were accordingly increased to US$ 254.9 million for 2020 (2019: US$ 54.4 million). Non-performing loans ratio stood at 2.6% (31 December 2019: 1.9%) with specific provision coverage of 85.9% (31 December 2019: 85.9%). Provision coverage levels are calculated on a cash provision basis excluding the value of the additional significant non-cash (real estate and securities) collateral available against non-performing loans.

The cost to income ratio was sustained at 29.3% (2019: 28.6%) reflecting AUB’s entrenched intelligent spend approach and the impact of the operational efficiencies achieved through streamlining of processes and leveraging from technology and digitization initiatives as part of the overall transformation plan.

The Group’s equity attributable to owners at 31 December 2020 decreased by 6.2% to US$ 4.0 billion (31 December 2019: US$ 4.3 billion). Return on Average Equity for 2020 was 10.4% (2019: 17.7%). The AUB Group’s total assets at 31 December 2020 was marginally lower (-0.5%) to US$ 40.1 billion (31 December 2019: US$ 40.3 billion) reflecting our prudent liquidity management under volatile operating conditions. Return on Average Assets was at 1.2% for 2020 (2019: 2.1%).

The Board of Directors has recommended a distribution comprising of a cash dividend of US cents 1.25 per share (2019: US cents 5.0 per share) together with a bonus ordinary share issue of 5% (2019: 10%), subject to AUB Annual General Assembly approval.

Mr. Meshal Al Othman, AUB Chairman, commented “Global and regional economies were strongly impacted by the Covid -19 out-break and the resultant extended lockdowns. The GCC economies were further hit by the continuing weakness in energy prices seriously limiting their budgetary spend and thereby affecting business confidence. AUB traversed these challenging market conditions in a balanced and structured manner and its results reflect its usual conservative stance in terms of risk assessment and management.”

He added “Though there have been recent positive developments with regards to the approved usage, availability and progressive roll-out of different vaccines for Covid-19 by different countries, the crisis is far from over. This is evident from the current subsequent waves of the Covid-19 spread as well as from the emergence of new more infectious strains of the virus. Accordingly, AUB will continue to prudently navigate these challenging and unprecedented times by providing a safe operating environment for all staff, clients and counterparties, building a seamless remote capability to transact business and support all our client needs and protecting its core earnings capacity until business as usual conditions can be restored”.

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Ahli United Bank’s Private Banking Partners with Principal Islamic Asset Management to support clients’ long-term financial goals

Ahli United Bank’s Private Banking Partners with Principal Islamic Asset Management to support clients’ long-term financial goals

The Ahli United Bank (AUB) Private Banking, acting through its Islamic Window: Al Hilal Islamic Banking Services, has selected Principal Islamic Asset Management (Principal Islamic) to support its clients investment needs. Principal Islamic is a leading Islamic investment management company offering Shariah-compliant unit trust, discretionary mandates and asset management solutions to individuals and businesses across the world. During the initial phase of the planned collaboration, Principal Islamic will provide their core research, investment outlook, market updates, and overall asset allocation advice along with Shariah-compliant portfolio management capabilities.

“We have been carefully selecting best-in-class investment firms to work with us to serve our clients, said Mark Hirst, Deputy Group CEO, Private Banking & Wealth Management. “Our aim is to provide our clients with top research-based offerings in Islamic investments, and to help them navigate the global markets during these turbulent times. We are, therefore, very pleased to announce our plans to work with Principal Islamic as they share our high standards of due diligence, performance and clarity in the services they provide. This is also in line with our commitment under the United Nation’s Principles for Responsible Banking to work with companies such as Principal Islamic who share these high ethical standards.”

Principal Islamic continues to advance its efforts to meet client demand for innovative investment solutions paired with the reach of a global asset manager. This collaboration will additionally allow Principal Islamic to develop appropriate offerings to meet AUB client needs in Islamic assets in the future.

“Our mission is to help people and companies around the world in building, protecting and advancing their financial well-being with our experience in unit trust, retirement, discretionary mandates and global asset management,” said Syed Mashafuddin, Principal Islamic Chief Executive Officer. “Working together allows us to provide Shariah-compliant solutions to Ahli United Bank’s clients. We appreciate the opportunity given by Ahli United Bank to serve their discerning clients and help them meet their long-term financial goals.”

Principal Islamic will be supported by Principal Global Investors’ Middle East, Africa and South Asia distribution team with office based in Dubai. “We will be supporting Principal Islamic, bringing our global investment expertise to their clients in the Middle East and beyond,” said Gaurav Kumar, Managing Director, Head of Fund Distribution for Middle East, Africa and South Asia, Principal Global Investors. “Through this unique collaboration, we look forward to providing active and timely investment advice and creating innovative products and solutions to meet client demand and support their desired outcomes.

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Ahli United Bank (AUB) Private Bank Honoured as Best Private Bank for Islamic Services and Outstanding Private Bank Middle East by Private Banker International

Ahli United Bank (AUB) Private Bank Honoured as Best Private Bank for Islamic Services and Outstanding Private Bank Middle East by Private Banker International

AUB Private Bank, Bahrain’s leading private banking services provider, has received the highly coveted Best Private Bank for Islamic Services and Outstanding Private Bank Middle East awards by the UK’s Private Banker International. The accolades are a testament to the unmatched dedication and commitment of AUB towards offering top-shelf private banking and Islamic services to its customer-base across the Middle East.

These two awards from PBI are the latest in a long string of industry recognitions garnered over the years by AUB’s Private Banking arm. These include the likes of The Banker’s Best Private Bank in Bahrain, Kuwait and Egypt 2019, Global Finance’s Best Islamic Financial Institutions 2019, Best Private Bank Award 2019, and Best Private Bank in Bahrain and Kuwait Awards 2019.

The announcement took place in Singapore, in a ceremony that brought together some of the most prominent actors in banking and finance. The two latest awards recognise stable growth in the Islamic Banking sector, and the continuous innovation by AUB’s Private Bank in its portfolio of Sharia-compliant products and services.

“It is an honour to be awarded by an industry publisher as prestigious as PBI. Over the years, we have intensified our efforts to be a leading player in Islamic finance, and provide our clientele with compelling alternatives to conventional banking solutions. We were particularly praised by the jury for our resilient Islamic model, based on strategic innovation and a sustainable growth trajectory. Our clients come first, and this unswerving focus has led us from one milestone to the next,” said AUB’s Deputy Group Chief Executive Officer of Private Banking & Wealth Management, Mark Hirst.

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AHLI UNITED BANK B.S.C. REPORTS A NET PROFIT OF US$ 409.3 MILLION ATTRIBUTABLE TO OWNERS OF THE BANK FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2020

AHLI UNITED BANK B.S.C. REPORTS A NET PROFIT OF US$ 409.3 MILLION ATTRIBUTABLE TO OWNERS OF THE BANK FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2020

Ahli United Bank B.S.C. (AUB) reported a net profit attributable to its equity shareholders US$ 115.9 million for Q3/2020, which represents a 35.9% decrease over the Q3/2019 reported profit of US$ 180.9 million. For the nine months ended 30 September 2020, net profit attributable to its equity shareholders was US$ 409.3 million, a decrease of 26.7% as compared to US$ 558.4 million achieved in YTD Q3/2019. Basic and diluted Earnings per Share in Q3/2020 were US 1.2 cents as compared to US 1.9 cents in Q3/2019 and US 4.1 cents for YTD Q3/2020 as compared to US 5.6 cents in YTD Q3/2019. Comprehensive income attributable to the owners of the bank for Q3/2020 was US$ 129.7 million compared to US$ 179.8 million in Q3/2019 and for YTD Q3/2020 was US$ 287.1 million as compared to US$ 577.8 million for YTD Q3/2019 due to unrealized financial adjustments related to temporary market fluctuations.

While Q3/2020 saw a gradual lifting of Covid-19 linked lockdowns by various countries followed by scattered signs of modest recovery, business sentiment continued to remain subdued affecting lending and liquidity opportunities which were further impacted by the continuing effect of lower oil revenues. As a result, Net Interest Income (NII) reduced by 16.9% to US$ 193.2 million in Q3/2020 (Q3/2019: US$ 232.5 million) and reduced by 17.0% to US$ 599.9 million for YTD Q3/2020 (YTD Q3/2019: US$ 722.7 million). Lower NII and Fees & Commission income resulted in lower Operating Income of US$ 247.4 million during Q3/2020 as compared to US$ 289.2 million in Q3/2019 whereas for the first nine months of 2020, Operating Income was US$ 823.0 million as compared to US$ 919.3 million in YTD Q3/2019. The cost to income ratio stood at 28.6% (YTD Q3/2019: 26.7%) reflecting AUB’s disciplined cost management culture.

AUB reported a non-performing loans ratio of 2.5% (31 December 2019: 1.9%) with specific provision coverage of 77.7% (31 December 2019: 85.9%). Total provision charges (net) were increased on a prudential and proactive basis to reach US$ 35.2 million for Q3/2020 (Q3/2019: US$ 4.9 million) and US$ 117.6 million for YTD Q3/2020 (YTD Q3/2019: US$ 39.2 million). Provision coverage levels are calculated on a cash provision basis excluding the value of the significant additional non-cash (real estate and securities) collaterals available against non-performing loans

The AUB Group’s total assets at 30 September 2020 marginally increased (+1.0%) to US$ 40.7 billion (31 December 2019: US$ 40.3 billion). Return on Average Assets was at 1.4% for YTD Q3/2020 (YTD Q3/2019: 2.2%). The Group’s equity attributable to owners at 30 September 2020 decreased by 6.5% to US$ 4.0 billion (31 December 2019: US$ 4.3 billion). Return on Average Equity for YTD Q3/2020 was 12.7% (YTD Q3/2019: 18.1%).

Mr. Meshal Al Othman commented “Global and regional economies were deeply impacted by the Covid -19 out-break and the resultant extended lockdowns. The GCC economies were further hit by the continuing weakness in energy prices seriously limiting their budgetary spend and affecting business confidence”. He added “AUB will continue to conservatively navigate this challenging and unprecedented environment by providing a safe operating environment for all staff, clients and counterparties, building a seamless remote capability to transact business and support all our client needs until business as usual conditions can be restored.”

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AHLI UNITED BANK B.S.C. REPORTS A NET PROFIT OF US$ 293.4 MILLION ATTRIBUTABLE TO OWNERS OF THE BANK FOR THE SIX MONTHS ENDED 30 JUNE 2020

AHLI UNITED BANK B.S.C. REPORTS A NET PROFIT OF US$ 293.4 MILLION ATTRIBUTABLE TO OWNERS OF THE BANK FOR THE SIX MONTHS ENDED 30 JUNE 2020

Ahli United Bank B.S.C. (AUB) reported a net profit attributable to its equity shareholders of US$ 293.4 million for the six months ended 30 June 2020, a decrease of 22.3% as compared to US$ 377.5 million achieved in H1/2019. Basic Earnings per Share in H1/2020 fell to US 2.9 cents as compared to US 3.7 cents in H1/2019.

The first half of 2020 was defined by the onset of the Covid-19 outbreak and by the collapse in oil prices. These events triggered global recessionary conditions which have hit energy producing countries hard due to the close correlation of their economic cycles to oil prices which fell sharply in the second quarter of the year. Health imposed lockdowns of extended durations exacerbated the economic fallout as retail and corporate activities were deeply impacted.

As a result, Net Interest Income (NII) was lower by 17.0% to US$ 406.7 million in H1/2020 as compared to US$ 490.2 million in H1/2019. The drop in NII and Fees & Commission income resulted in a drop in Operating Income to US$ 575.6 million during the first six months of 2020 as compared to US$ 630.1 million in H1/2019. The cost to income ratio stood at 27.4% (H1/2019: 26.5%) reflecting AUB’s structured cost discipline.

To adjust for the heightened levels of macro-economic and sectoral risks, total provision charges (net) for H1/2020 increased by 140.0% from US$ 34.3 million to US$ 82.4 million. As a result, Net Operating Income decreased by 17.2% from US$ 595.8 million in H1/2019 to US$ 493.2 million in H1/2020. Comprehensive income attributable to the owners of the bank for H1/2020 reduced by 60.5% to US$ 157.3 million as compared to US$ 398.0 million for H1/2019 due to unrealized financial adjustments related to market fluctuations.

The Group’s equity attributable to owners at 30 June 2020 decreased by 9.5% to US$ 3.9 billion (31 December 2019: US$ 4.3 billion). The AUB Group’s total assets at 30 June 2020 marginally decreased (-0.5%) to US$ 40.1 billion (31 December 2019: US$ 40.3 billion) due to tighter asset-liability cost management. Return on Average Assets was at 1.6% for H1/2020 (H1/2019: 2.2%). Return on Average Equity for H1/2020 was 13.6% (H1/2019: 18.4%). AUB reported a non-performing loans ratio of 2.1% (31 December 2019: 1.9%) with specific provision coverage of 81.8% (31 December 2019: 85.9%). Provision coverage levels are calculated on a cash provision basis excluding the value of the additional significant non-cash (real estate and securities) collaterals available against non-performing loans.

Mr. Meshal Al Othman commented “The first half of 2020 was an unprecedented experience of two halves. An excellent start in January and February was followed by the Covid-19 pandemic and oil prices meltdown, extreme market volatility and a transformed operating and business reality imposed by lockdown conditions.” He added “AUB’s response was rapid and adaptative to this new and evolving situation which we expect to continue into the future. Our priorities were and will continue to be ensuring a safe operating environment for all staff, clients and counterparties, a seamless remote capability to transact business and support our clients in a very difficult and challenging environment and maintaining our earnings capacity in a prudent manner to be able to meet shareholders’ expectations”.

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Ahli United Bank (AUB) Private Bank and Forbes Family Trust (FFT) Forge New Strategic Partnership

Ahli United Bank (AUB) Private Bank and Forbes Family Trust (FFT) Forge New Strategic Partnership

Ahli United Bank’s Private Banking unit has unveiled a key tie-up with Forbes Family Trust, the New Yorkbased multi-family office providing thoughtful investment management and family office services to help clients preserve and grow wealth.

FFT is poised to add tremendous value through their extensive relationships with various asset managers. They will employ their expertise to aid AUB Private Banking in the selection of Private Equity and other Alternative Investments for AUB clients.

Commenting on the new partnership, Mark Hirst, Deputy Group CEO, Private Banking & Wealth Management said, “We have been carefully scouting for and selecting best-in-class investment houses to collaborate with to serve our clients. Our ultimate target is to furnish our clientele with a wide host of dynamically managed, globally positioned investment portfolios.” He added, “We are, therefore, very pleased to announce the joint work between us and FFT, a partnership inspired by the common objective of delivering investments that further every client’s unique financial goals.”

FFT is a renowned and long-established multi-family office and investment advisory firm, boasting a strong North American pedigree. They’ve also developed robust Islamic capabilities and are managing a number of large mandates across the Middle East. FFT plans to work closely with AUB Private Banking to evaluate investment opportunities in the alternate asset classes to diversify investments and provide long-term growth, stability, and benefits for AUB’s clients.

“It’s an honour for us to join forces with AUB’s Private Banking unit. We were pitted against a number of competitive investment advisory firms in the US, and emerged a winner. We look forward to commencing this partnership with AUB, GCC’s premier private bank. We have the capabilities to provide them with toptier private equity, venture capital, and real estate managers, together with various other investment opportunities.” stated Keith Bloomfield, CEO of Forbes Family Trust.

Based in New York, Forbes Family Trust is a global player in the multi-family office business, specialising in alternative investments, asset allocation, portfolio construction, and financial planning. Originally founded to serve the investment and wealth planning requirements of the Forbes family, FFT opened its doors in 2009 to investors, prominent families, family offices, foundations, and endowments from the whole world over. FFT is a registered investment adviser and fiduciary, with affiliates managing assets under management (AUM) worth $6.5 billion as of 31 December 2019.