AUB Kuwait achieved a net profit of KD 26.5 million for first half of 2017
KUWAIT: Ahli United Bank announced its results and financial statements for the first half ending on 30 June 2017, following the endorsement of the statements by the Bank's Board of Directors and the approval of the Central Bank of Kuwait. The Bank's net operating profit grew by 5 percent amounting to KD 39 million during the first half, up from KD 37 million recorded in the first six months of 2016.
The Bank recorded a net profit after tax of KD 26.5 million for the first half of 2017, an increase of 3.3 percent over the KD 25.6 million recorded for the same period last year. This profit is achieved following a conservative approach to provisioning and credit policies to mitigate the risks attached with the ongoing market volatility and geopolitical instability in the region.
Chairman, Dr Anwar Al-Mudhaf, remarked that "The continuity of growth in AUB's profits for the first half of 2017 is further evidence and confirmation of the strength and soundness of the Bank's financial position, its prudent operational vision and successful strategy. With our wide client base, 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".
"The Bank has achieved a return on equity (ROE) of 13.6 percent and a return on assets (ROA) of 1.4 percent as at the end of June 2017, being amongst the highest profitability of banks announcing their results in the local market for the same period. The higher returns contributed in generating earnings per share (EPS) of 14.7 fils. The Bank's total assets grew to reach KD 3.8 billion at the end of June 2017 up from KD 3.7 billion recorded at the end of last year. Total deposits reached KD 3.3 billion. The Bank has reported a sound capital adequacy ratio (CAR) of 17.4 percent being higher than the minimum regulatory required level of 13.5 percent."
The Chairman attributed these positive results for the period to the efforts of the Bank's management and staff who have provided distinctive services and integrated solutions for customers, maintaining customer confidence and enhancing the presence of the Bank in Corporate Banking, Retail Banking, Private Banking & Wealth Management, and Treasury. The Chairman stressed that the management's success has placed the Bank among the best and safest Islamic Banks, not only locally but also regionally.
The Bank has continued to receive high credit ratings from international credit rating agencies, such as Fitch, Moody's and Capital Intelligence. The Bank maintained a credit rating of "A+" on the long term and "F1" on the short term with stable outlook by Fitch Ratings Agency, and "A2" on the local currency with stable outlook by Moody's. Capital Intelligence affirmed the Bank's long term credit rating of foreign currency to "A+" and enhanced the short term foreign currency rating to "A2". All these ratings confirm the credit standing, capital quality, and stability of the Bank for future growth. During the first of half of 2017 the Bank obtained the award for "Best Bank for Private Banking in Kuwait" from the prestigious international magazine, The Banker. In addition, the Bank obtained several awards during past year including the "Best Islamic Bank Award in Kuwait" for the fourth consecutive year, also from, The Banker, and the "Second Safest Islamic Bank in Kuwait and Fourth in the GCC" awarded by the Global Finance magazine.
Furthermore, the Chairman expects further progress in the Bank's performance with growth during the forthcoming period, notwithstanding the increased competition in the market. The Bank is committed to the continuous improvement in banking services, including the innovation of its services, products and financial solutions.
In concluding his statement, Dr Al-Mudhaf extended his thanks and appreciation to the Central Bank of Kuwait for valuable guidance, to the Bank's Board of Directors, to customers, to shareholders, and to management and staff for the confidence and support they have conferred upon the Bank. This has enabled the Bank to realize these continued achievements and maintain its preeminent position in the Kuwaiti banking sector.
Chairman Dr Anwar Al-Mudhaf