Ahli United profit surges 20pc
Manama, October 26, 2011
Bahrain-based Ahli United Bank (AUB) posted a net profit of $240.3 million for the first nine months of the year, up 19.5 per cent compared to $201.1 million last year.
During the third quarter of the year, the net profit attained was 20.6 per cent higher, on a quarterly comparable basis, at $78.6 million compared to $65.2 million last year.
The group's net operating income rose by 15.2 per cent to $481.3 million over the same period last year, reflecting its resilience in operating in the current difficult regional and international environment.
The resultant basic earnings per share was $4.8 cents for the period ended September 30 this year, compared to $4.1 cents last time. The net interest income increased by 12.3 per cent to $415.7 million compared to $370.2 million last time.
Fee income slightly increased to $91.2 million, a 1.7 per cent increase on a year-to-date basis.
Judicious cost control measures together with the intelligent spend culture adopted by the bank resulted in the cost income ratio improving to 31.6 per cent compared to 32.7 per cent last time, despite an unfavourable currency translation effect.
Prudent risk management and monitoring of the risk asset portfolio sustained its asset quality with the non-performing loans ratio contained at 2.5 per cent as on September 30 this year, compared to 2.4 per cent as on December 31, 2010.
Provision charge during the current period declined by 15 per cent to $117.1 million.
The overall provision coverage ratio, including collective impairment provisions, increased to 137 per cent as compared to 119 per cent on December 31, 2010.
Return on Average Equity for the first nine-month period this year of 13.1pc, significantly improved over the 12.1 per cent level achieved in the same period last year. Return on Average Assets also improved to 1.3 per cent compared to 1.2 per cent last time.
Asset growth was prudently managed at $27.2 billion as on September 30 this year, up by 2.8 per cent from $26.5 billion on December 31, 2010, which mainly resulted from a 3.6 per cent increase in loans and advances to $15 billion.
Customers' deposits increased by 12.4 per cent (+$1.8 billion) to reach $16.7 billion which enabled AUB to reduce its dependence on wholesale funding by $1.4 billion during the year.
'AUB continued its solid performance into the third quarter of 2011 against the backdrop of a very difficult regional and international operating environment,' AUB chairman Fahad Al Rajaan said.
'The sustained growth in net operating income and net profit attained demonstrates AUB's resilience and the effectiveness of its business model based on geographic and product diversification within a prudent risk framework,' he added.-TradeArabia News Service