AUB reports net operating profit of KD 54.7m
Promising results emphasize bank’s strength as it expands: Al-Mudhaf
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.”