AUB re­ports net op­er­at­ing profit of KD 54.7m

Promis­ing re­sults em­pha­size bank’s strength as it ex­pands: Al-Mud­haf

Kuwait Times - - BUSINESS -

KUWAIT: Ahli United Bank, Kuwait, an­nounced its re­sults and fi­nan­cial state­ments for the third quar­ter end­ing 30 Septem­ber 2016, fol­low­ing the en­dorse­ment of the state­ments by the Bank’s Board of Di­rec­tors and the ap­proval of the Cen­tral Bank of Kuwait.

Dr An­war Al-Mud­haf, Chair­man, stated “Th­ese promis­ing re­sults dur­ing the pe­riod, in spite of the pre­vail­ing re­gional mar­ket con­di­tions due pre­dom­i­nantly to low oil prices, em­pha­sizes Ahli United Bank’s strength as it con­tin­ues to ex­pand its busi­nesses.”

Fur­ther­more the Chair­man stated that sub­se­quent to the bal­ance sheet date the Bank achieved an­other mile­stone by suc­cess­fully com­plet­ing an $200 mil­lion is­sue of Basel III com­pli­ant Ad­di­tional Tier 1 Per­pet­ual Cap­i­tal Se­cu­ri­ties on 25 Oc­to­ber 2016 which was over­sub­scribed by more than three times.

This was achieved in less than one week from the date of an­nounce­ment of the trans­ac­tion both lo­cally and in­ter­na­tion­ally with a road­show cov­er­ing meet­ings in Asia, the Mid­dle East and Europe. The strong de­mand gen­er­ated for AUB’s Sukuk is a clear in­di­ca­tion of the con­fi­dence of both lo­cal and global in­vestors in the Bank’s di­ver­si­fied busi­ness model, its ro­bust fi­nan­cial per­for­mance, and over­all credit wor­thi­ness.

Net Op­er­at­ing Profit for the pe­riod end­ing 30 Septem­ber 2016 reached KD 54.7 mil­lion in com­par­i­son with KD 54.3 mil­lion dur­ing the same pe­riod in 2015. The net profit for the pe­riod 2016 reached KD 39.1 mil­lion af­ter con­sid­er­ing ad­di­tional pre-cau­tion­ary pro­vi­sion of KD 11.8 mil­lion. Ahli United Bank’s prof­its are driven by its core busi­nesses of Cor­po­rate Bank­ing, Re­tail Bank­ing, Pri­vate Bank­ing and Trea­sury. Op­er­at­ing in­come reached KD 79.3 mil­lion dur­ing the pe­riod.

To­tal as­sets as of 30 Septem­ber 2016 reached KD 4.04 bil­lion up 4.8 per­cent com­pared with the end of Septem­ber 2015, while to­tal share­hold­ers’ eq­uity in­creased by 10.1 per­cent to KD 0.39 bil­lion. The fi­nanc­ing port­fo­lio wit­nessed growth in all its com­po­nents, reach­ing KD2.8 bil­lion, an in­crease of 5.7 per­cent over the year, while cus­tomer de­posits in­creased by 5.4% for the same pe­riod to reach KD 2.8 bil­lion with a quar­terly dis­tri­bu­tion of prof­its to de­pos­i­tors com­men­su­rate with the re­sults of the Bank’s op­er­a­tions dur­ing the re­port­ing pe­riod.

Ahli United Bank reaf­firmed its mar­ket lead­er­ship in pro­vid­ing con­sis­tent value to its share­hold­ers as ev­i­dent by its Key Per­for­mance In­di­ca­tors. Th­ese in­clude Earn­ings Per Share (EPS) of 25.1fils, Re­turn on Av­er­age As­sets of 1.3 per­cent whilst Re­turn on Av­er­age Eq­uity achieved 14.2 per­cent for the pe­riod. The fi­nan­cial state­ments show strong lev­els of liq­uid­ity and cap­i­tal­iza­tion re­sult­ing in a Cap­i­tal Ad­e­quacy Ra­tio of15.3 per­cent which is above the Cen­tral Bank of Kuwait manda­tory level of 12.5 per­cent.

“Based on the mo­men­tum built in pre­vi­ous years, driven by the ro­bust­ness of our bal­ance sheet, our client base and branch net­work, the unique ser­vices we of­fer and the ex­per­tise of our staff, we will con­tinue our suc­cess in at­tain­ing an in­creas­ing share of the do­mes­tic mar­ket through the pro­mo­tion of Is­lamic Bank­ing,” con­firmed Dr Al-Mud­haf.

The Bank re-af­firmed its pre-em­i­nent po­si­tion in Is­lamic bank­ing by win­ning the award for The Is­lamic Bank of the Year - Kuwait in 2016 for the fourth con­sec­u­tive year from the spe­cial­ized in­ter­na­tional mag­a­zine The Banker, con­firm­ing the Bank’s abil­ity to ren­der dis­tinc­tive bank­ing ser­vices and prod­ucts. The Bank was also awarded the Sec­ond Safest Is­lamic Bank in Kuwait and Fourth in the GCC for 2016 by the Global Fi­nance mag­a­zine which is based on an eval­u­a­tion of long-term for­eign cur­rency rat­ings from rat­ing agen­cies and to­tal as­sets of 500 largest banks world­wide.

The Bank achieved the fol­low­ing rat­ings is­sued by in­ter­na­tional credit rat­ing agen­cies. Fitch af­firmed the Bank’s credit strength on the Long-Term and Short-Term as ‘A+’ and ‘F1’ re­spec­tively with a sta­ble Out­look. Moody’s af­firmed ‘A2’ global lo­cal cur­rency (GLC) de­posit rat­ing with a sta­ble Out­look. Cap­i­tal In­tel­li­gence has af­firmed the Bank’s LongTerm For­eign Cur­rency (FC) and Short-Term FC Rat­ing as ‘A+’ and ‘A2’ re­spec­tively with a sta­ble Out­look. Th­ese rat­ings un­der­score Ahli United Bank’s sound fi­nan­cial po­si­tion.

Dr Al-Mud­haf con­cluded by say­ing, “We ex­tend our thanks and ap­pre­ci­a­tion to the Cen­tral Bank of Kuwait, the Cap­i­tal Mar­kets Au­thor­ity and to our loyal and val­ued cus­tomers. I would also like to thank the man­age­ment and staff for their un­tir­ing ef­forts to en­sure the con­tin­ued suc­cess of the Bank in a chal­leng­ing and com­pet­i­tive mar­ket.”

Dr An­war Al-Mud­haf

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