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”.

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.

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.

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.”

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”.

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.

Ahli United Bank B.S.C. (AUB) reported a net profit attributable to its equity shareholders of US$ 377.5 million for the first half of 2019. The net profit reflected an increase of 5.6% in H1/2019 as compared to the net profit of US$ 357.4 million achieved in H1/2018. The Q2/2019 net profit of US$ 184.7 million represents a 1.1% improvement over the Q2/2018 reported profit of US$ 182.7 million. The Basic Earnings per Share in H1/2019 were US 4.1 cents (+5.1%), compared to US 3.9 cents in H1/2018 (EPS: US 1.9 cents in Q2/2019 versus US 1.9 cents in Q2/2018).

Operating income grew by 2.9% to US$ 630.1 million during first six months of 2019 compared to US$ 612.4 million in H1/2018 mainly driven by an increase in net interest income by US$ 22.9 million (+4.9%) to US$ 490.2 million in H1/2019 compared to US$ 467.2 million in H1/2018 attributable to growth in average loans and investments. Net operating income increased (+4.5%) from US$ 570.1 million in H1/2018 to US$ 595.8 million in H1/2019. Cost to income ratio stood at 26.5% (H1/2018: 26.1%) reflecting the continuous focus on the rigorous implementation of broad based cost discipline and of an intelligent spend approach.

Solid asset quality levels were maintained with a non-performing loans ratio of 2.0% (31 December 2018: 1.9%) with specific provision coverage ratio of 85.1% (31 December 2018: 85.5%) and total provision coverage ratio of 188.6% (31 December 2018: 214.7%).

The Group’s total assets at 30 June 2019 increased by 7.1% to US$ 38.0 billion (31 December 2018: US$ 35.5 billion). Return on Average Assets was at 2.2% for H1/2019 (H1/2018: 2.3%). The Group’s equity attributable to owners at 30 June 2019 stood at US$ 3.9 billion (31 December 2018: US$ 3.9 billion). The Group’s Return on Average Equity (ROAE) achieved for H1/2019 was 18.4% (H1/2018: 18.8%).

Mr. Meshal Al-Othman, AUB Chairman, commented: “Despite mounting geopolitical tension in the region and subdued operating environments in AUB’s major markets, AUB continued its robust performance in first half of 2019 maintaining prudent and healthy growth in core earnings and operating net profit. AUB’s continued positive core performance is a testament to its well-managed business model based on diversification and cross border flows through its strategic investments across the Gulf and MENA region. Growth was underpinned by robust risk management and continuous focus to ensure the effective deployment of capital resources across the AUB Group’s current and targeted markets.”

Ahli United Bank has held an award ceremony to honour the winners of the first edition of innovate@AUB, an initiative aimed at engaging all employees in driving innovation across its lines of business and empowering them to ideate and test new solutions to support organic growth and to better deliver on customers’ needs and expectations.

AUB’s Group CEO & Managing Director Adel El-Labban announced and congratulated the six winning finalists at the event, which was held at AUB’s headquarters in Bahrain in conjunction with parallel ceremonies beamed live by video conferencing from sister banks in Kuwait, Egypt and the UK.

Launched earlier in the year, ‘innovate@AUB’ is an ongoing and open opportunity platform for all AUB staff to present new ideas and approaches which have the potential to transform the way AUB does business and serves customers. The program is designed to inspire and engage fresh, out of the box thinking and to recognise and reward employees who submit original, practical proposals which result in a better process, product or service offering by AUB.

Participation in the program was substantial and broad-based. The first edition attracted over 90 entries from across AUB’s regional network, with six proposals making it to the winning podium. Successful proposals were rigorously evaluated based on their originality, practicality, strategic fit and potential impact.

The winning entries involved a number of practical and innovative proposals for process improvement, business growth, enhanced customer service and improved risk management, such as the introducing of a more robust tool to gauge customers’ satisfaction, the implementing of a fully digitized process for a key retail product, the setting up of collaborative inter-departmental platform to address customers’ needs as well as various upgrades to leverage the power and convenience of the AUB’s electronic channels.

Addressing attendees at this pan-Group event, Mr. El-Labban said: “As an idea-driven bank, it is exciting to recognise forward-thinking colleagues who are driving positive change and moving AUB forward. All participants are winners through their pro-active contribution. The six prize winners of this pilot round should serve as an inspiration to all colleagues to be part of this sustained effort to contribute ideas, big or small, and to influence useful changes in a practical, well-considered manner”.

“This initiative is part of AUB’s ongoing plans to remain financially agile and digitally relevant as we continue to build on our strengths in adapting to the ever-changing banking landscape and in staying ahead of the competitive and technological curve”, said Mr. El-Labban.

Ahli United Bank announced the launch of Remit to India, an online remittance platform to India. To promote this unique offering, AUB will not be charging any fees for Remit to India until 31st October 2019.

The Remit to India service provides customers with the capability to send money to over 75,000 bank branches in India in a fast, easy and convenient manner through AUB’s online banking or mobile banking apps. AUB customers are now empowered to manage their remittance transactions to India 24X7 through their mobile phones.

Remit to India has been designed to make sending money home easy, low cost and quick. The platform is easy to navigate with simple steps to add and manage beneficiaries and offers attractive exchange rates.

The bank, as a special offer to customers, has announced the Remit to India service with no fees until 31st October 2019. The Remit to India platform is facilitated with the NEFT network in India and will soon add the IMPS service as well. AUB is planning to offer this service on its ATM network shortly.

Suvrat Saigal, Deputy Group CEO-Retail Banking, AUB, commented: “We recognize that our customers have a significant requirement for an efficient remittance product. With this in mind, we are delighted to offer Remit to India which has been specially designed to make remittances low cost, quick and easy”.

By simply logging onto their AUB internet/mobile banking account, customers can start using Remit to India. Customers can call the AUB contact center 17221999 for more details.

Ahli United Bank announces the launch of its next generation mobile banking application which will make Banking significantly easier. The AUB mobile app has now been enhanced with multiple additional functionalities, offering ease of navigation and a customer centric user experience that empowers customers to manage their banking transactions anytime and anywhere using their mobile phones.

The AUB mobile app enables first time users to register themselves, therefore there is no need to visit the Branch to register. There will no longer be need for passwords as the app enables facial recognition or fingerprint to access the app. In addition, customers will easily be able to choose from the wide range of services enhancing the customers’ banking experience including additional services for transferring money, paying bills, a currency converter, or set up and management of their beneficiaries. Customers can download the app at Apple App Store or Google Play Store.

Suvrat Saigal, Deputy Group CEO-Retail Banking, AUB, commented: “We are delighted to introduce the new generation of mobile banking in Bahrain. As a customer centric Bank, AUB is committed to delivering solutions that simplify our customers Banking experience by giving them easy access to services where and when they require and providing integrated end-to-end banking solutions to our clients.”