Monday 31, July 2017 by Jessica Combes

Ahli United Bank B.S.C. reports H1 2017 profit of $311.3 million attributable to the equity sharehol

 

Ahli United Bank B.S.C. (AUB) reported a record net profit of $311.3 million for the half year ended 30 June 2017, up 3.4 per cent compared to the net profit of $301.2 million in H1 2016.  

The Q2 2017 net profit of $151.9 million represents a 3.6 per cent improvement over the Q2 2016 reported profit of $146.6 million. The basic earnings per share in H1 2017 were 3.9 cents, as compared to US 3.8 cents in H1 2016. 

“Our results demonstrate AUB’s ability to deliver sustainable core earnings on a consistent basis through its diversified strategic investments across the Gulf and MENA region. Growth was prudently achieved across all our business segments, assisted by robust risk management, tight cost containment measures and focus on the sourcing of cross border opportunities,” said Hamad Al-Humaidhi, AUB Chairman. 

Net interest income improved by 2.1 per cent year-on-year driven by loan growth and improved margins. Despite generally weak operating conditions, loans recorded moderate growth across the AUB Group funded through an increase in customer deposits, while deploying the additional liquidity surplus into investment grade securities. Operating results were supported by the Bank’s sustained cost efficiencies achieving a cost to income ratio of 27.5 per cent compared to H1 2016 at 27.5 per cent.  

The non-performing loans ratio stood at 2.4 per cent compared to 31 December 2016 at 2.3 per cent with an unchanged 85 per cent specific coverage ratio. The total provision coverage ratio, inclusive of collective impairment provisions, was 153.3 per cent as at 30 June 2017 vs. 31 December 2016 at 155.6 per cent.  

The AUB Group’s return on average equity (ROAE) for H1 2017, increased to 16.7 per cent, compared to the ROAE of 16.6 per cent achieved in the half year of 2016. Return on Average Assets also improved to 2.1 per cent, compared to H1 2016 at 1.9 per cent.

 

 

  

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