Thursday 02, November 2017 by Jessica Combes

Ahli United Bank net profit attributable to shareholders at $468.7 million


Ahli United Bank B.S.C. (AUB) reported a net profit attributable to its equity shareholders of $468.7 million for the nine months ended 30 September 2017, an increase of six per cent as compared to $442.1 million achieved in YTD Q3/2016.

The net profit achieved for the third quarter of 2017 was $157.4 million, higher by 11.7 per cent than 2016 third quarter reported profit of $140.9 million. The basic earnings per share in YTD Q3/2017 increased to US 6.0 cents, from US 5.7 cents in YTD Q3/2016.

“AUB sustained its core performance for the first nine months of 2017 and is looking forward to maintaining its positive growth trajectory. AUB’s growth is a testament to AUB’s well-managed business model based on diversification and cross border flows and of the success of its prudent business development practices in its target markets complemented by effective risk management and judicious cost controls,” said Hamad Al-Humaidhi, AUB Chairman. 

Net Interest income improved by 2.5 per cent year-on-year driven by loan growth of 4.1 per cent compared to December 2016 across the AUB Group funded by a 6.6 per cent increase in customer deposits with additional liquidity deployed in sovereign and investment grade securities. Operating results were supported by the Bank’s continued application of operational efficiencies, resulting in an improved cost to income ratio of 27.8 per cent (YTD Q3/2016: 28.1 per cent).

The non-performing loans ratio stood at 2.4 per cent (31 December 2016: 2.3 per cent) with an increased specific provision coverage ratio of 85.3 per cent (31 December 2016: 84.9 per cent). The total provision coverage ratio, inclusive of collective impairment provisions but excluding available significant collaterals, was 156.1 per cent as at 30 September 2017 (31 December 2016: 155.6 per cent). 

The Group’s Return on Average Equity (ROAE) for YTD Q3/2017 was 16.7 per cent, as compared to 16.2 per cent achieved in the prior period of 2016. Return on Average Assets was higher at 2.1 per cent for YTD Q3/2017 (YTD Q3/2016: 1.9 per cent).