Ahli United Bank B.S.C. (AUB) reported a record net profit attributable to its equity shareholders of US$ 203.9 million for Q4/2022, which represents a 30.2% increase over the Q4/2021 reported net profit of US$ 156.6 million. The Q4/2022 net profit is the highest quarterly profit achieved by the bank since its establishment in 2000. It was primarily driven by higher operating income and lower provision charges given AUB’s conservative forward looking provisioning measures undertaken in the preceding quarter.

The Basic and Diluted Earnings per Share increased to US 1.6 cents in Q4/2022 versus US 1.2 cents in Q4/2021. Comprehensive income attributable to the owners of the bank for Q4/2022 was at US$ 113.5 million (Q4/2021: US$ 147.5 million, -23.0%). The core operating performance during the quarter was strong with net interest income increasing to US$ 242.5 million in Q4/2022 (Q4/2021: US$ 227.6 million, +6.6%) and total operating income surging to US$ 341.4 million in Q4/2022 (Q4/2021: US$ 282.7 million, +20.7%).

It should be noted that AUB’s financial results from Q4/2022 are consolidated into Kuwait Finance House K.S.C.P (KFH) as per the applicable international financial reporting standards, as the Effective Date for acquisition was 2 October 2022.

AUB reported a net profit attributable to its equity shareholders of US$ 546.1 million for the full year 2022 which represents a 10.1% decrease over the 2021 reported profit of US$ 607.2 million. This is entirely attributable to the higher exceptional precautionary non-recurring provision charge of US$160.2 million incurred during Q3/2022. Basic and Diluted Earnings per Share in 2022 is US 4.5 cents, as compared to US 5.1 cents in 2021. Total comprehensive income attributable to the owners of the bank for 2022 was US$ 261.2 million (2021: US$ 641.3 million, -59.3%). Net interest income for 2022 was US$ 909.1 million (2021: US$ 871.8 million, +4.3%) primarily achieved through an increase in interest earning assets. Total operating income for the 2022 was US$ 1,236.9 million (2021:  US$ 1,108.9 million, +11.5%).

The Group’s equity attributable to owners as at 31 December 2022 marginally decreased by 2.1% on a comparative basis to US$ 4.4 billion due to dividend distribution and forex revaluation changes (31 December 2021: US$ 4.5 billion). The AUB Group’s total assets as at 31 December 2022 were US$ 41.6 billion (31 December 2021: US$ 41.9 billion, -0.8%). Return on Average Equity for 2022 was 12.3% (2021:14.7%) and Return on Average Assets stood at 1.4% for 2022 (2021: 1.6%).

It should be noted that without the precautionary non-recurring ECL 1 & 2 provision charge of US$ 160.2 million recorded in Q3/2022, Return on Average Equity adjusts to 15.4% and Return on Average Assets to 1.7%, above the comparative period in 2021, in line with AUB normal historic operating levels.

The Group improved its already solid asset quality in 2022 with a gross non- performing loan (Stage 3) ratio of 1.9% (31 December 2021: 2.4%), which represents one of the lowest NPL ratio ever achieved by AUB. The provision coverage ratio for Stage 3 loans was extremely conservative at 84.5% (31 December 2021: 83.1%) and is calculated on a cash provision basis excluding the value of the substantial additional non-cash (real estate and securities) legally assigned collaterals available against non-performing loans of US$ 491.2 million in value (31 December 2021: US$ 364.5 million in value). Stage 1 and Stage 2 ECL provisions for the non-impaired loans surged to 1.0% and 13.5% at 31 December 2022 as compared to 0.9% and 11.4% at 31 December 2021, which stand well above the regional banking sector averages, funded by the precautionary provisions  recorded by the bank in Q3/2022.

The cost to income ratio for 2022 was at 29.7% (2021: 29.5%) reflecting AUB’s continuing structured efforts to enhance operational efficiencies through the progressive roll-out of automation and digitization initiatives as part of the AUB Group’s transformation plan and the gradual harvesting of its data initiatives.

The Board of Directors has recommended a distribution comprising of a cash dividend of US cents 2.5 per share, subject to AUB Annual General Assembly approval.

The AUB Deputy Chairman, Mohammad Fouad Al-Ghanim commented “Despite a challenging background of the prolonged Russia-Ukraine conflict, increasing inflationary pressures, slowdown in the global economy and overall market volatility, AUB achieved strong results in 2022 with its total operating income increasing by 11.5% proving once again the solidity and resilience of its multimarket business model as well as its prudent risk management approach. Excluding the non recurring additional precautionary provision charge of US$ 160.2 million taken in Q3/2022 from non-distributable pre-acquisition profits for KFH shareholders, the AUB Group achieved record financial results in 2022 with consolidated NPAT reaching to US$ 706.3 million, a 16.3% increase over the previous year NPAT and the second highest NPAT achieved in its history”.

Mr. Al-Ghanim added: “During 2022, AUB successfully acquired Citibank’s Consumer Banking business in Bahrain. The acquisition which included the retail banking, credit card, and unsecured lending businesses of Citibank Bahrain has provided critical mass to AUB in highly profitable retail and premium segments and has enabled AUB to significantly enhance its market share in the Bahrain credit card business. During the year, AUB has also successfully concluded a landmark US$ 1.1 billion Sustainable Murabaha Financing Facility, making it the first ever issuance of its type raised by a financial institution worldwide. The Sustainable Murabaha Financing Facility attracted very high demand from regional and international banking investors demonstrating and reinforcing AUB’s credentials as a leading and innovative market player.”

He concluded by stating that: “The KFH acquisition which was concluded in November 2022 is a key milestone in AUB’s corporate evolution and a strong testament to AUB’s excellent financial performance over the past 23 years and of the stellar value accretion achieved for its shareholders. The transaction valued AUB at US$ 10.7 billion which translated to an IRR of c.17.0% p.a. for AUB shareholders over the 23 year period since the bank’s establishment. It also represents attractive exit P/E and P/BV multiples of 16.6x and 2.5x respectively. This transaction has laid the foundation for the creation of a leading Shari’a compliant bank in the regional and global banking space and should provide a very solid platform for achieving the aspirations of its combined shareholders.”

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 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).

AUB has become a subsidiary of Kuwait Finance House K.S.C.P. since 2 October 2022.

AUB’s excellent track record over the past 23 years has earned it a string of prestigious local and regional accolades over the years, including the “Best Bank in Middle East” award 8 times by the leading international publications such as The Banker, Euromoney and Global Finance.

During Q3/2022, Ahli United Bank B.S.C. (AUB) proactively undertook a detailed evaluation of the challenging impact of global recessionary and inflationary pressures on regional and international markets and their possible repercussions on the bank in a conservative and forward looking manner. As a result, AUB recorded a higher exceptional additional precautionary provision charge of US$ 160.2 million against Stage 1 and Stage 2 exposures (performing assets) as a prudent non-recurring provisioning measure. This lead to a reduction in net profit attributable to the owners of the bank for Q3/2022 to US$ 1.3 million, as compared to US$ 152.1 million for Q3/2021, a decrease of 99.1%, and a related reduction in the Basic and Diluted Earnings per Share to almost nil in Q3/2022 (US 1.4 cents in Q3/2021). Total comprehensive loss attributable to the owners of the bank for Q3/2022 was US$ 31.2 million (Q3/2021: Total comprehensive income of US$ 156.0 million). The core operating performance during the quarter was strong with net interest income of US$ 235.8 million in Q3/2022 (Q3/2021: US$ 222.5 million, +6.0%) and total operating income of US$ 292.0 million in Q3/2022 (Q3/2021: US$ 274.0 million, +6.6%).

It should be noted that AUB’s YTD  30 September 2022 financial results are not consolidated into Kuwait Finance House KSCP (KFH) as per applicable international financial reporting standards, as the Effective Date for acquisition was 2 October 2022. Accordingly, KFH will start consolidating AUB financial results in its reported financial performance from Q4/2022 onwards (for the three months ending 31 December 2022).

AUB reported a net profit attributable to its equity shareholders of US$ 342.2 million for the first nine months of year 2022 which represents a 24.1% decrease over the YTD Q3/2021 reported profit of US$ 450.6 million mainly due to higher exceptional precautionary provision charge incurred during Q3/2022 as explained above. Basic and Diluted Earnings per Share in YTD Q3/2022 were US 2.9 cents, compared to US 3.9 cents in YTD Q3/2021. Net interest income for YTD Q3/2022 was US$ 666.6 million (YTD Q3/2021: US$ 644.2 million, +3.5%) primarily achieved through increase in interest earning assets. Total operating income for the YTD Q3/2022 was US$ 895.5 million (YTD Q3/2021:  US$ 826.2 million, +8.4%). Total comprehensive income attributable to the owners of the bank for YTD Q3/2022 was US$ 147.7 million (YTD Q3/2021: US$ 493.8 million, -70.1%).

The Group’s equity attributable to owners as at 30 September 2022 decreased by 4.1% on a comparative basis to US$ 4.3 billion due to dividend distribution and forex revaluation changes (31 December 2021: US$ 4.5 billion). Return on Average Equity for YTD Q3/2022 was 10.3% (YTD Q3/2021: 14.6%). Return on Average Assets stood at 1.2% for YTD Q3/2022 (YTD Q3/2021: 1.6%), noting that without the precautionary non-recurring provision charge, Return on Average Equity increased to 15.1% and Return on Average Assets increased to 1.7%, above the comparative period in 2021.

The non-performing loans ratio was at 2.6% (31 December 2021: 2.4%) with specific provision (ECL 3) 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 which total US$ 437.6 million in value (31 December 2021: US$ 364.5 million in value). Stage 1 and stage 2 ECL provisions for the non-impaired loans surged to 1.1 % and 15.0% at 30 September 2022 as compared to 0.9% and 11.4% at 31 December 2021, well above the regional banking sector averages, due to the precautionary non-recurring provision charge booked during Q3/2022.

The cost to income ratio for YTD Q3/2022 was unchanged at 29.0% (YTD Q3/2021: 29.0%) 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 transformation plan.

The AUB Deputy Chairman Mohammad Fouad Al-Ghanim commented “Against a challenging background of global recession and inflation concerns, continued supply chain disruptions, market volatility, and the continuing Russia-Ukraine conflict, AUB has proactively and prudently assessed the potential risk impact on its business and has taken an additional non-recurring precautionary ECL provision charge of US$ 160.2 million during Q3/2022, on an exceptional basis. This measure represents a continuation of the inherent conservative risk measurement stance taken by the AUB Group over the years whenever warranted by prevailing economic and operating conditions. Excluding this exceptional provision charge, the AUB Group achieved solid operational results in first nine months of 2022 across all countries with consolidated NPAT excluding the exceptional provisions reaching US$ 502.4 million, a 11.5% increase over the previous year Q3NPAT”.  Mr. Al-Ghanim added: “I am confident that these measures will significantly contribute to AUB’s future performance and to our contribution to the KFH Group going forward. My confidence is underpinned by AUB’s strong ability to deliver sustainable earnings growth on a consistent basis through its diversified business model across the Gulf and MENA region and by its well provided and conservatively managed risk exposures.”

He concluded by stating that: “The KFH acquisition which is expected to be fully concluded by end of November 2022 is a key milestone in AUB’s corporate evolution and a strong testament to AUB’s excellent financial performance over the past 22 years and of the stellar value accretion achieved for its shareholders. This transformational transaction will create a leading Shari’a compliant bank in the regional and global banking space and provide a very solid platform for achieving all its shareholders and corporate aspirations. We look forward to AUB’s and KFH’s future growth and success in the coming years as this new era unfolds”.

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).

Pursuant to acquisition of AUB by Kuwait Finance House K.S.C.P. (“KFH”) effective 2 October 2022, KFH is the Parent Company. KFH is a public shareholding company incorporated in the State of Kuwait on 23 March 1977 and listed in the Boursa Kuwait and Bahrain Bourse. KFH is regulated and supervised by Central Bank of Kuwait.

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.

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.

Ahli United Bank B.S.C. (AUB) reported a net profit attributable to its equity shareholders of US$ 170.9 million for Q1/2022, which represents a 7.1% increase over the Q1/2021 reported profit of US$ 159.6 million driven by an increase in the contribution of net interest income as well as trading, investment & other income. The Basic and Diluted Earnings per Share were US 1.7 cents in Q1/2022 versus US 1.6 cents in Q1/2021. Comprehensive income attributable to the owners of the bank for Q1/2022 was US$ 65.6 million (Q1/2021: US$ 174.8 million, -62.5%). Net interest income was US$ 212.1 million in Q1/2022 (Q1/2021: US$ 207.0 million, +2.5%) and total operating income was US$ 310.7 million in Q1/2022 (Q1/2021: US$ 291.0 million, +6.7%) achieved through judicious asset management.

The Group’s equity attributable to owners as at 31 March 2022 was US$ 4.5 billion (31 December 2021: US$ 4.4 billion, +1.4%). The AUB Group’s total assets as at 31 March 2022 stood at US$ 41.6 billion (31 December 2021: US$ 41.9 billion, -0.7%). Return on Average Assets was sustained at 1.7% for Q1/2022 (Q1/2021: 1.7%).

The non-performing loans ratio remained at 2.4% (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) collaterals assigned against non-performing loans.

The cost to income ratio for Q1/2022 was 28.1% (Q1/2021: 27.7%) 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 “Post pandemic recovery was hit by global supply chain disruptions which are likely to impact growth and push up inflation. The global economic situation is further impacted by the Ukraine war and its related economic fall-out. As a result, global economies and financial markets are still subject to volatility given the evolving developments”.

He added “Against the challenging backdrop of these evolving and uncertain market conditions, AUB’s performance in Q1/2022 demonstrates its resilience and ability to deliver sustainable core earnings on a consistent basis through its diversified well managed business model. AUB’s strategic investments across multiple markets, robust risk management, intelligent cost control measures and ongoing focus on the sourcing of cross border business flows has helped achieve its net profit growth for Q1/2022, while maintaining solid asset quality parameters and tight cost discipline.”.

He further noted that “The recently concluded agreement with Citibank to acquire its consumer banking business in the Kingdom of Bahrain is a testament to AUB’s dynamic and focused approach to ensure the effective deployment of capital resources across its current and targeted markets to enhance shareholders value creation”.

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.

Ahli United Bank B.S.C. (AUB) reported a net profit attributable to its equity shareholders of US$ 156.6 million for Q4/2021, which represents a 265% increase over the Q4/2020 reported net profit of US$ 42.9 million driven by an increase in net interest income and a lower level of net credit provision charges. The Basic and Diluted Earnings per Share were US 1.3 cents in Q4/2021 versus US 0.3 cents in Q4/2020. Comprehensive income attributable to the owners of the bank for Q4/2021 was US$ 147.5 million (Q4/2020: US$ 47.9 million, +208.1%). Net interest income was US$ 227.6 million in Q4/2021 (Q4/2020: US$ 199.4 million, +14.1%).

AUB reported a net profit attributable to its equity shareholders of US$ 607.2 million for the full year 2021, represents a 34.3% increase over the 2020 reported profit of US$ 452.2 million mainly driven by credit growth aided by effective balance-sheet management and the reduction in credit provision charges supported by overall economic improvement. The Basic and Diluted Earnings per Share in 2021 increased to US 5.6 cents as compared to US 4.1 cents in 2020. Comprehensive income attributable to the owners of the bank for the year 2021 was US$ 641.2 million (2020: US$ 334.9 million, +91.5%). Net interest income for 2021 was US$ 871.8 million (2020: US$ 799.4 million, +9.1%) achieved through prudent asset growth and reduction in funding costs given lower liquidity premia.

The Group’s equity attributable to owners as at 31 December 2021 increased by 11.7% to US$ 4.5 billion (31 December 2020: US$ 4.0 billion). Return on Average Equity for 2021 increased to 13.8% (2020: 10.4%). The AUB Group’s total assets as at 31 December 2021 increased by 4.6% to US$ 41.9 billion (31 December 2020: US$ 40.1 billion) reflecting balanced balance sheet growth supported by prevailing economic recovery in its main operating markets. Return on Average Assets also improved to 1.6% for 2021 (2020: 1.2%).

The non-performing loans ratio was lower at 2.4% (31 December 2020: 2.6%) with very solid specific provision coverage of 83.1% (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 assigned against non-performing loans.

The cost to income ratio for 2021 was 29.5% (2020: 29.3%) reflecting AUB’s focussed efforts to enhance operational efficiencies through the progressive roll-out of digitization initiatives as part of AUB Group’s overall transformation plan currently under implementation.

The Board of Directors has recommended a distribution comprising of a cash dividend of US cents 3.0 per share (2020: US cents 1.25 per share) together with a bonus ordinary share issue of 10% (2020: 5%), subject to AUB Annual General Assembly approval.

The AUB Chairman, Mr. Meshal Al Othman, commented “Against a challenging background of continuing pandemic concerns, emerging supply chain disruptions and market volatility driven by inflationary pressures, AUB achieved excellent operational and financial results in 2021 proving again the solidity and resilience of its multimarket business model’.

He added “During 2021, AUB Group successfully concluded a perpetual Tier-1 Sukuk-2021 Issue for US$ 600 million through its Kuwait subsidiary following the recall and full redemption of its earlier US$ 200 million perpetual Tier-1 Sukuk-2016 Issue, and a US$ 600 million long term senior Sukuk issuance at the parent bank with both deals significantly oversubscribed by a wide range of prime regional and international investors demonstrating AUB’s credentials as a leading market player. Going forward, AUB will continue to prudently navigate the challenging and unprecedented times by providing a safe operating environment for all staff, clients and counterparties, by expanding and updating its seamless remote capabilities to transact business and support all our client needs as well as by protecting and developing its core earnings capacity through organic and inorganic measures”.

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 (42% of the total assets are Sharia-compliant at 31 December 2021), 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 its consistent selection as the “Best Bank in Bahrain” over the years.

Ahli United Bank B.S.C. (AUB) reported a net profit attributable to its equity shareholders of US$ 152.1 million for Q3/2021, which represents a 31.2% increase over the Q3/2020 reported profit of US$ 115.9 million driven by an increase in net interest income and a lower level of net provision charge for credit losses. The Basic and Diluted Earnings per Share were US 1.5 cents in Q3/2021 versus US 1.1 cents in Q3/2020. Comprehensive income attributable to the owners of the bank for Q3/2021 was US$ 156.0 million (Q3/2020: US$ 129.7 million, +20.3%). Net interest income was US$ 222.5 million in Q3/2021 (Q3/2020: US$ 193.2 million, +15.2%) and total operating income was US$ 274.0 million in Q3/2021 (Q3/2020: US$ 247.4 million, +10.8%).

AUB reported a net profit attributable to its equity shareholders of US$ 450.6 million for the first nine months of year 2021 which represents a 10.1% increase over the YTD Q3/2020 reported profit of US$ 409.3 million mainly driven by an increase in net interest margins and a lower provision charge in 2021 given the exceptional incremental precautionary Stage 1 and Stage 2 ECL gross provision charges of US$ 78.4 million raised in YTD Q3/2020 on performing risk assets to address 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 YTD Q3/2021 were US 4.3 cents, compared to US 3.9 cents in YTD Q3/2020. Comprehensive income attributable to the owners of the bank for YTD Q3/2021 was US$ 493.8 million (YTD Q3/2020: US$ 287.1 million, +72.0%). Net interest income for YTD Q3/2021 was US$ 644.2 million (YTD Q3/2020: US$ 599.9 million, +7.4%) primarily due to improved spreads, reduced liquidity premia and improving market conditions. Total operating income for the YTD Q3/2021 was US$ 826.2 million (YTD Q3/2020: US$ 823.0 million, +0.4%).

The Group’s equity attributable to owners at 30 September 2021 increased by 8.6% to US$ 4.3 billion (31 December 2020: US$ 4.0 billion). Return on Average Equity for YTD Q3/2021 increased to 13.7% (YTD Q3/2020: 12.7%). The AUB Group’s total assets as at 30 September 2021 increased by 3.6% to US$ 41.5 billion (31 December 2020: US$ 40.1 billion) reflecting prudent balance sheet growth compatible with the prevailing economic environment in its main operating markets. Return on Average Assets also improved to 1.6% for YTD Q3/2021 (YTD Q3/2020: 1.4%).

The non-performing loans ratio was lower at 2.5% (31 December 2020: 2.6%) with specific provision coverage of 82.2% (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) assigned collaterals available against non-performing loans.

The cost to income ratio for YTD Q3/2021 was 29.0% (YTD Q3/2020: 28.6%) reflecting AUB’s efforts to enhance operational efficiencies through the roll-out of digitization initiatives as part of the AUB Group’s overall transformation plan.

The AUB Chairman, Mr. Meshal Al Othman, commented “Regional governments have conducted successful vaccination programs which ensured that the majority of their populations have been vaccinated. This facilitated proactive measured steps to ensure opening-up of local economies and return of customer confidence. However, the current period has also seen resurgence of Covid-19 virus variants in some other parts of the world with the resultant health situation adversely impacting business sentiment impacted by shortages of raw materials and components seriously affecting production levels in many key industries. As a result, global financial markets are still subject to volatility given the evolving developments and uncertainty.

Against the challenging backdrop of the still evolving market conditions, AUB achieved a very satisfactory performance in the first nine months of 2021 in terms of both financial and operational results”.

He added “During September 2021, AUB successfully completed a 5 year Senior Islamic Sukuk Issue and raised US$ 600 million as part of its funding base diversification efforts. The Sukuk issue was very well received and was subscribed over 2.5 times demonstrating AUB’s strong credentials and is listed on the London Stock Exchange”.

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.

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).

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”.

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.

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.