Ahli United Bank reports net profit of KD 18m for H1 2021
Total assets grew up to reach KD 4.44 billion at the first half end
KUWAIT: Ahli United Bank K.S.C.P announced its results for the first six months of this year. Accordingly, the bank has recorded a net profit for the first half of 2021 amounting to KD 18 million which is higher by two percent than the KD 17.7 million of net profits recorded for the same period last year.
The total assets have grown up to reach KD 4.44 billion at the end of the 1H2021, (KD 4.37 billion in December 2020). The net financing receivables have grown to reach KD 3.17 billion at the end of June 2021 representing a growth of two percent compared to KD 3.10 billion recorded at the end of 1H2020. Customer deposits portfolios have reached to KD 3.07 billion at the end of June 2021 representing a growth of 10 percent compared to KD 2.79 billion recorded at the same period last year. (Finances KD 3.11 billion and deposits KD 3.01 billion in December 2020).
The Capital Adequacy Ratio has reach 20.02 percent at the end of June 2021 which is comfortably higher than the CBK current minimum required ratio of 11 percent. The available margin will support the expansion in financing, services and operations as per the Bank’s determined plans. The capital base of the Bank was boosted after the successful issuance and pricing of its $600 million non-convertible Additional Tier 1 (AT1) Capital Mudaraba Sukuk
The bank continued to follow a conservative policy when any facilities are classified as non-performing. Nevertheless, the non-performing facilities remained as low as 1.99 percent of the overall finance portfolio with a provision coverage ratio of 212.6 percent (excluding collaterals) at the end of June 2021.
Commenting on the results, Dr Anwar AlMudhaf, Chairman of Ahli United Bank said despite the recovery signs, the continuing uncertainty as for COVID-19 pandemic, including any possible coronavirus variants and the resulting tightening of precautionary measures - and the extent of their impacts, have prompted the Bank to continue its conservative policy in managing various risks by supporting its provisions to be able to face any possible decline in the quality of assets, in addition to taking all necessary measures to protect its employees and clients.
Dr Al-Mudhaf pointed that AUB is still carrying out its community-based role in supporting government efforts in combating the spread of COVID-19, expressing his optimism about the improvement of the general scene at the level of all sectors, including the banking sector, with the reduction of COVID-19 impacts and gradual returning to normal life with the success of the national efforts in confronting the virus. Dr AlMudhaf hoped that the current year will witness a great success in strengthening the Bank’s financial position, especially after the great achievement attained by issuing the Banka successful pricing and issuance of $600 million Non-convertible Additional Tier 1 (AT1) Capital Mudaraba Sukuk. The Sukuk Certificates attracted more than $1.8 billion in orders at peak, covering three times the size of the target issue. The issuance was successfully listed in both Euronext Dublin in Ireland and in Nasdaq Dubai, which is again a clear indication of the confidence in the bank’s solid performance as a leading Islamic financial institution in the region. Through this issue, we managed to provide a good source to support the bank’s capital, which diversifies the sources of finance and capital, supports the Bank’s finance base and strikes a balance between different components of its capital thus continue its growth journey. The proceeds of the Sukuk will be deployed to support the expansion strategy adopted by the Bank.
Dr Al-Mudhaf expressed his thanks and appreciation to the bank’s shareholders and clients for their support to the bank under these exceptional conditions. He also thanked the Central Bank of Kuwait and all the regulatory, health and security authorities, praising the efforts of the Executive Management and all the Bank’s staff that enabled the bank to manage this crisis and deal with its consequences. Al-Mudhaf also praised the exceptional efforts made by the front-line staff in different branches to meet client urgent needs during the various stages of the crisis.
Jehad Al-Humaidhi, the Acting Chief Executive Officer at AUB said: AUB has managed to maintain the momentum of its financial performance and operations, overcoming the consequences imposed by COVID-19 pandemic with minimal damage, and succeeded in converting challenges into growth opportunities in various areas of the Bank’s business, through in-depth study of the market requirements, with its concern to provide advanced banking services and solutions that meet the needs of its valued client, both individuals and corporate, within resilient and smooth procedures and transactions that meet their aspirations.
Al-Humaidhi stressed: “We will continue to focus on expanding the bank’s digital offers by enhancing our operating model and continuing to make strategic investments in our technology platforms, to provide seamless experience for our clients. This ensures that we will continue to achieve attractive returns for shareholders and strengthen our position in view of the changes surrounding the banking sector.
Al-Humaidhi added:
The positive results of the Bank uphold the efficiency and resilience of the policies and procedures that helped the bank develop its operations.
These efforts were crowned by the many awards the Bank received during this period, including the “Best Bank in
Private Banking, Kuwait 2021” by International Business Magazine. AUB was conferred this Award in recognition of its success in creating an effective model that has been achieved on the ground for its services provided to clients of Private Banking and Wealth Management, and the “Best Banking CIO of the Year Kuwait 2021” award by Global Banking and Finance Review conferred to Abdullah Yousef Jaragh, the General Manager of Information Technology at AUB. This award is a recognition of the Bank’s ability to provide an advanced IT infrastructure and the outstanding contribution of Jaragh in supporting the industry.
In conclusion, Al-Humaidhi expressed her thanks and appreciation to the AUB’s management and employees for their cooperation and dedication, which had the greatest credit for the Bank’s success in attaining these good financial results. We would also like to reassure our valued clients of the Bank’s readiness and its solid financial position, which enable it to provide all banking services, taking all precautionary measures to maintain the safety of its clients and employees.