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AUB profit rises 6pc

Bahrain Business
Wed, 01 Nov 2017

MANAMA: Ahli United Bank (AUB) reported a net profit of $468.7 million for the nine months ended September, an increase of six per cent compared with $442.1m achieved in the same period last year.

Net profit for the third quarter was $157.4m, 11.7pc higher than $140.9m reported in the same period last year.

Earnings per share increased to six cents, from 5.7 cents earlier.

Net interest income improved by 2.5pc year-on-year driven by loan growth of 4.1pc funded by a 6.6pc increase in customer deposits with additional liquidity deployed in sovereign and investment grade securities.

Operating results were supported by operational efficiencies, resulting in an improved cost to income ratio of 27.8pc, as against 28.1pc earlier.

The non-performing loans ratio stood at 2.4pc as against 2.3pc as of end-December 2016 with an increased specific provision coverage ratio of 85.3pc (end-December 2016: 84.9pc).

The total provision coverage ratio, inclusive of collective impairment provisions but excluding available significant collaterals, was 156.1pc as of end-September 2017 (end-December 2016: 155.6pc).

The return on average equity was 16.7pc, as compared with 16.2pc achieved in the prior year period.

Return on average assets was higher at 2.1pc as against 1.9pc earlier.

“AUB sustained its core performance for the first nine months and is looking forward to maintaining the positive growth trajectory,” said chairman Hamad Al Humaidhi.

“The growth is a testament to a well-managed business model based on diversification and cross border flows and prudent business development practices in target markets complemented by effective risk management and judicious cost controls.”

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