Ahli United Bank re­ports H1/2017 profit of $311.3m at­trib­ut­able to eq­uity share­hold­ers

Kuwait Times - - BUSINESS -

Ahli United Bank B.S.C. (AUB) re­ported a record net profit of $311.3 mil­lion for the half year ended 30 June 2017, up 3.4 per­cent com­pared to the net profit of $301.2 mil­lion in H1/2016. The Q2/2017 net profit of $151.9 mil­lion rep­re­sents a 3.6 per­cent im­prove­ment over the Q2/2016 re­ported profit of $146.6 mil­lion. The Ba­sic Earn­ings per Share in H1/2017 were US 3.9 cents, as com­pared to US 3.8 cents in H1/2016.

Net In­ter­est in­come im­proved by 2.1 per­cent yearon-year driven by loan growth and im­proved mar­gins. De­spite gen­er­ally weak op­er­at­ing con­di­tions, loans recorded mod­er­ate growth across the AUB Group funded through an in­crease in cus­tomer de­posits, while de­ploy­ing the ad­di­tional liq­uid­ity sur­plus into in­vest­ment grade se­cu­ri­ties. Op­er­at­ing re­sults were sup­ported by the Bank’s sus­tained cost ef­fi­cien­cies achiev­ing a cost to in­come ra­tio of 27.5 per­cent (H1/2016: 27.5 per­cent).

The non-per­form­ing loans ra­tio stood at 2.4 per­cent (31 De­cem­ber 2016: 2.3 per­cent) with an un­changed 85 per­cent spe­cific cov­er­age ra­tio. The to­tal pro­vi­sion cov­er­age ra­tio, in­clu­sive of col­lec­tive im­pair­ment pro­vi­sions, was 153.3 per­cent as at 30 June 2017 (31 De­cem­ber 2016: 155.6 per­cent).

The AUB Group’s Re­turn on Av­er­age Eq­uity (ROAE) for H1/2017, in­creased to 16.7 per­cent, com­pared to the ROAE of 16.6 per­cent achieved in the half year of 2016. Re­turn on Av­er­age As­sets also im­proved to 2.1 per­cent (H1/2016: 1.9 per­cent). Ha­mad Al-Hu­maidhi, AUB Chair­man, com­mented: “Our re­sults demon­strate AUB’s abil­ity to de­liver sus­tain­able core earn­ings on a con­sis­tent ba­sis through its di­ver­si­fied strate­gic in­vest­ments across the Gulf and MENA re­gion. Growth was pru­dently achieved across all our busi­ness seg­ments, as­sisted by ro­bust risk man­age­ment, tight cost con­tain­ment mea­sures and fo­cus on the sourc­ing of cross bor­der op­por­tu­ni­ties”.

Ha­mad Al-Hu­maidhi

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