Ahli United Bank (AUB) posted a record net profit of $94.3 million for the first quarter of the year, a 37 increase on the $68.9 million it achieved over the same period last year.

AUB's prudent risk management approach enabled it to avoid the prevailing global market turmoil and to sustain quarter on quarter profit growth momentum with its total operating income increasing by 52.6 per cent to $209.7 million compared to $137.4 million last time.

It was primarily attributable to core earnings arising from the group's operations in its seven core markets in Bahrain, Kuwait, Qatar, Oman, Egypt, Iraq and the UK and from its ability to tap cross border deal flows between these markets. Containing operating costs remained a challenging task in an inflationary economic environment, the bank said.

Investments in technology and cross group synergies achieved enabled AUB to improve the cost-to-income ratio from 35.2 per cent  to 32.7 per cent, it said.

Basic earnings per ordinary share of 2.1 cents was maintained at the same level as the previous period, despite the massive increase in number of shares resulting from mandatory conversion of 50pc of Class A preference shares and Tranche-I of Class B preference shares to ordinary shares as at January 1 under the terms of the respective issues.

Dilutive earnings per ordinary share increased by 23.5pc 2.1 cents from 1.7 cents.

Group's total assets at the end of first quarter stood at $25.1 billion, an increase of 9.1pc over $23 billion reported at the end of last year.

"The bank's first quarter results are very encouraging and reflects the continued success of the bank's business model built on a focused profit driven merger and acquisition strategy along with a strong continued organic growth sustained through cross selling of its products across its expanded regional network of subsidiaries and managed affiliates," said AUB chairman Fahad Al Rajaan. -TradeArabia News Service