AUB re­ports net profit of $442.1 mil­lion for 9 months

Kuwait Times - - BUSINESS -

Ahli United Bank BSC (AUB) re­ported a net profit at­trib­ut­able to its eq­uity share­hold­ers of $442.1 mil­lion for the nine months ended 30 Septem­ber 2016, an in­crease of 5.5 per­cent as com­pared to $ 419.2 mil­lion achieved in YTD Q3/2015. The net profit achieved for the third quar­ter of 2016 was $ 140.9 mil­lion, sim­i­lar to 2015 third quar­ter re­ported profit of US$ 140.9 mil­lion. The Ba­sic Earn­ings per Share in YTD Q3/2016 in­creased to US 6.3 cents, from US 6.2 cents in YTD Q3/2015.

The growth in net profit of AUB was un­der­pinned by the growth in its to­tal as­sets to $ 35.8 bil­lion (+5.3 per­cent) from $ 34.0 bil­lion at 2015 year end. Net in­ter­est in­come grew by 2.5 per­cent from $ 604.8 mil­lion to $ 619.7 mil­lion. Fees, com­mis­sions & other in­come grew by 4.9 per­cent from $ 123.2 mil­lion to $ 129.3 mil­lion. As a re­sult, net op­er­at­ing in­come in­creased by 5.2 per­cent to reach $ 763.7 mil­lion. With the con­tin­ued ap­pli­ca­tion of our “in­tel­li­gent spend” pol­icy, op­er­at­ing ex­penses were con­tained at $ 235.1 mil­lion (+2.4 per­cent) re­sult­ing in a cost to in­come ra­tio of 28.3 per­cent (YTD Q3 / 2015: 27.5 per­cent).

As­set qual­ity pa­ram­e­ters con­tin­ued to be healthy with a non per­form­ing loans ra­tio of 2.1 per­cent backed by a con­ser­va­tive to­tal pro­vi­sion cov­er­age ra­tio of 173.2 per­cent, inclusive of col­lec­tive im­pair­ment pro­vi­sions. With col­lat­er­als, the cov­er­age ra­tio in­creased to 287.8 per­cent.

The Group’s Return on Aver­age Eq­uity (ROAE) for YTD Q3/2016 in­creased to 17.0 per­cent, based on im­proved op­er­at­ing re­sults as com­pared to 16.7 per­cent achieved in the prior pe­riod. Return on Aver­age As­sets was higher at 1.9 per­cent for YTD Q3/2016 (YTD Q3/2015: 1.8 per­cent).

Ha­mad Al-Hu­maidhi, AUB Chair­man, com­mented: “De­spite tighter fis­cal pol­icy and weaker pri­vate sec­tor ac­tiv­ity re­sult­ing in lower liq­uid­ity in the bank­ing sys­tem and mod­er­ate re­gional eco­nomic growth, AUB sus­tained its pos­i­tive core per­for­mance trend in the first nine months of 2016. 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 se­lec­tive growth ini­tia­tives to in­crease prof­itabil­ity and mit­i­gate risk chal­lenges in its tar­get mar­kets.”

“In Oc­to­ber 2016, the Ahli United Bank K.S.C.P., AUB’s sub­sidiary in Kuwait, suc­cess­fully com­pleted a $ 200 mil­lion is­sue of Ad­di­tional Tier 1 Per­pet­ual Basel III Com­pli­ant Sukuk. The Is­sue was well re­ceived in in­ter­na­tional mar­kets with more than three times sub­scrip­tion. This also rep­re­sents a clear testimony of the AUB Group’s strong cre­den­tials among prime in­ter­na­tional and re­gional in­vestors as a well-man­aged, suc­cess­ful and cred­it­wor­thy fi­nan­cial in­sti­tu­tion. AUB will con­tinue to seek, iden­tify and tap or­ganic as well as in­or­ganic growth op­por­tu­ni­ties within an ac­cept­able riskre­turn frame­work, “added Al-Hu­maidhi.

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