Ahli United Bank reports $159.4 million in profits for the first quarter of the year
Ahli United Bank (AUB) has recorded a net profit attributable to its equity shareholders of $159.4 million for the quarter ended 31 March 2017.
The net profit reflected an increase of 3.1 per cent in Q1/2017 as compared to the comparative net profit figure of $154.6 million achieved in Q1/2016. The Q1/2017 net profit also represents a 24.0 per cent improvement over the Q4/2016 trailing quarter reported profit of $128.5 million. The Basic Earnings per Share in Q1/2017 were US 2.1 cents, same as in Q1/2016.
Commenting on the results, Hamad Al-Humaidhi, AUB Chairman, said, “AUB’s continued growth trajectory in its performance for Q1/2017 is underpinned by our focus on sustainable earnings across multiple markets. AUB’s diversification in its major operating markets and its continued success in expanding cross border business flows between these markets has helped achieve its growth in net profit after tax for Q1/2017, while maintaining solid asset quality parameters.”
Given the continuing weak operating environment, AUB focused on optimising its balance sheet management strategy resulting in an increase in net interest income by 1.4 per cent to $204.1 million during the quarter. The cost to income ratio improved to 27.3 per cent (Q1/2016: 27.7 per cent).
Solid asset quality levels were sustained with the non-performing loans ratio improving to 2.2 per cent (31 December 2016: 2.3 per cent) and the specific provision coverage ratio increasing to 85.3 per cent (31 December 2016: 84.9 per cent). The total provision coverage ratio, inclusive of collective impairment provisions, was 159.7 per cent as at 31 March 2017 (31 December 2016: 155.6 per cent).