Ahli United posts record H1 profit of $301m

04/08/2016 06:06 AST

Bahrain-based Ahli United Bank (AUB) reported a record net profit of $301.2 million for the first half (H1) of the year, reflecting an increase of 8.2 per cent as compared to the net profit figure of $278.4 million achieved in H1 2015.

The Q2 2016 net profit of $146.6 million represents an 11.7 per cent improvement over the Q2/2015 reported profit of $131.2 million. The basic earnings per share in H1/2016 were 4.2 cents, as compared to 4.1 cents in H1 2015.

AUB continued to grow its operating income with net interest income (NII) rising by 4.0 per cent to $407.4 million during the period. Total operating income grew by 7.8 per cent from $529.3 million to $570.9 million. The cost income ratio improved to 27.7 per cent (H1 2015: 28.8 per cent).

The non-performing loans ratio at H1/2016 stood at 2.1 per cent with an enhanced specific provision coverage ratio of 85.3 per cent. The total provision coverage ratio, inclusive of collective impairment provisions, was 177.0 per cent as at June 30. Both specific and total coverage ratios are exclusive of the significant available collaterals against impaired assets.

The Group’s Return on Average Equity (ROAE) for H12016, increased to 17.4 per cent, compared to the ROAE of 16.7 per cent achieved in the half year of 2015. Return on Average Assets also increased to 1.9 per cent (H1 2015: 1.8 per cent).

Hamad Al-Humaidhi, AUB Chairman, said: “The strong results for H1/2016 are a record and represent clear testimony to AUB’s well-managed and resilient business model based on regional diversification and cross border flows as well as proof of the success of its balance-sheet management initiatives to increase operating income and mitigate risk challenges in its target markets despite continuing weak economic conditions in 2016.”

“AUB is currently not expecting any material impact on its asset quality or overall performance due to the BREXIT event, given the concentration of its UK exposures in good quality secured assets and the ongoing application of robust credit underwriting standards and very conservative loan to value (LTVs) policy guidelines.

“I am optimistic that AUB is well positioned to meet and handle the emerging challenges arising out of evolving global market conditions post BREXIT and other geo-political developments”, added Al-Humaidhi.

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