AUB net profit surges 6% to $468.7 million

KUWAIT: Ahli United Bank B.S.C. (AUB) reported a net profit attributable to its equity shareholders of $468.7 million for the nine months ended 30 September 2017, an increase of 6.0 percent as compared to $442.1 million achieved in YTD Q3/2016. The net profit achieved for the third quarter of 2017 was $157.4 million, higher by 11.7 percent than 2016 third quarter reported profit of $140.9 million. The Basic Earnings per Share in YTD Q3/2017 increased to US 6.0 cents, from US 5.7 cents in YTD Q3/2016.

Net Interest income improved by 2.5 percent year-onyear driven by loan growth of 4.1 percent compared to December 2016 across the AUB Group funded by a 6.6 percent increase in customer deposits with additional liquidity deployed in sovereign and investment grade securities. Operating results were supported by the Bank’s continued application of operational efficiencies, resulting in an improved cost to income ratio of 27.8 percent (YTD Q3 / 2016: 28.1 percent). The non-performing loans ratio stood at 2.4 percent (31 December 2016: 2.3 percent) with an increased specific provision coverage ratio of 85.3 percent (31 December 2016: 84.9 percent). The total provision coverage ratio, inclusive of collective impairment provisions but excluding available significant collaterals, was 156.1 percent as at 30 September 2017 (31 December 2016: 155.6 percent).

The Group’s Return on Average Equity (ROAE) for YTD Q3/2017 was 16.7 percent, as compared to 16.2 percent achieved in the prior period of 2016. Return on Average Assets was higher at 2.1 percent for YTD Q3/2017 (YTD Q3/2016: 1.9 percent).

Hamad Al-Humaidhi, AUB Chairman, commented: “AUB sustained its core performance for the first nine months of 2017 and is looking forward to maintaining its positive growth trajectory. 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 prudent business development practices in its target markets complemented by effective risk management and judicious cost controls.”