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AUB reports H1/2016 net profit of US$ 301.2 million attributable to its shareholders


Ahli United Bank B.S.C. (AUB) reported a record net profit of US$ 301.2 million attributable to its equity shareholders for the half year ended 30 June 2016. The net profit reflected an increase of 8.2% in H1/2016 as compared to the net profit figure of US$ 278.4 million achieved in H1/2015. The Q2/2016 net profit of US$ 146.6 million represents a 11.7% improvement over the Q2/2015 reported profit of US$ 131.2 million. The Basic Earnings per Share in H1/2016 were US 4.2 cents, as compared to US 4.1 cents in H1/2015.

AUB continued to grow its operating income with net interest income (NII) rising by 4.0% to US$ 407.4 million during the period. Total operating income grew by 7.8% from US$ 529.3 million to US$ 570.9 million. The cost income ratio improved to 27.7% (H1/2015: 28.8%).

The non-performing loans ratio at H1/2016 stood at 2.1% (31 December 2015: 1.8%) with an enhanced specific provision coverage ratio of 85.3% (31 December 2015: 84.6%). The total provision coverage ratio, inclusive of collective impairment provisions, was 177.0% as at 30 June 2016 (31 December 2015: 181.9%). Both specific and total coverage ratios are exclusive of the significant available collaterals against impaired assets.

The Group’s Return on Average Equity (ROAE) for H1/2016, increased to 17.4%, compared to the ROAE of 16.7% achieved in the half year of 2015. Return on Average Assets also increased to 1.9% (H1/2015: 1.8%).

Mr. Hamad Al-Humaidhi, AUB Chairman, commented: “The strong results for H1/2016 are a record and represent clear testimony to AUB’s well-managed and resilient business model based on regional diversification and cross border flows as well as proof of the success of its balance-sheet management initiatives to increase operating income and mitigate risk challenges in its target markets despite continuing weak economic conditions in 2016”.

“AUB is currently not expecting any material impact on its asset quality or overall performance due to the BREXIT event, given the concentration of its UK exposures in good quality secured assets and the ongoing application of robust credit underwriting standards and very conservative loan to value (LTVs) policy guidelines. I am optimistic that AUB is well positioned to meet and handle the emerging challenges arising out of evolving global market conditions post BREXIT and other geo-political developments”, added Mr. Al-Humaidhi.