MANAMA: Ahli United Bank (AUB) reported a net profit attributable to its equity shareholders of $170 million for Q2-2022, which represents a 22.3 per cent increase over the Q2-2021 reported profit of $138.9m driven by an increase in net interest income as well as fees and commission and investment income and a lower level of net provision charge for credit losses.
Basic and diluted earnings per share were 1.3 cents in Q2-2022 versus 1.1 cents in Q2-2021.
Total comprehensive income attributable to the owners of the bank for Q2-2022 was $113.3m, down 30.5pc from $162.9m in Q2-2021.
Net interest income was $218.6m in Q2-2022, down 1.9pc from $214.7m in Q2-2021 and total operating income was $292.9m in Q2-2022, up 12.1pc from $261.2m in Q2-2021.
AUB reported a net profit attributable to its equity shareholders of $340.9m for the first half of year 2022 which represents a 14.2pc increase over the H1-2021 reported profit of $298.6m mainly driven by an increase in net interest income and trading, investment and other income.
Basic and diluted earnings per share in H1-2022 were 2.9 cents, compared to 2.5 cents in H1-2021.
Total comprehensive income attributable to the owners of the bank for H1-2022 was $178.9m down 47pc from $337.8m in H1-2021.
Net interest income for H1-2022 was $430.7m, up 2.2pc from $421.7m in H1-2021, primarily achieved through increase in interest earning assets.
Total operating income for the H1-2022 was $603.5m, up 9.3pc from $552.2m in H1-2021.
As a result of profitability improvement, return on average equity for H1-2022 increased to 15.3pc (H1-2021: 14.6pc).
The group’s total assets as of end-June 2022 increased by 4.7pc to $43.9 billion from $41.9bn as of end-2021 reflecting prudent balance sheet growth compatible with the prevailing economic environment in its main operating markets.
Return on average assets also improved to 1.7pc for H1-2022 from 1.6pc in H1-2021.
The group’s equity attributable to owners as of end-June 2022 decreased by 3.4pc to $4.3bn particularly due to dividend distribution (end-2021: $4.5bn).
The non-performing loans ratio was 2.5pc (end-2021: 2.4pc) with specific provision coverage of 81.1pc (end-2021: 83.1pc).
Provision coverage levels are calculated on a cash provision basis excluding the value of the substantial additional non-cash (real estate and securities) assigned collaterals available against non-performing loans.
The cost to income ratio for H1-2022 was 28.2pc (H1-2021: 27.9pc) reflecting AUB’s continuing efforts to enhance operational efficiencies through the progressive roll-out of automation and digitisation initiatives as part of the AUB Group’s overall transformation plan.
AUB chairman Meshal Al Othman commented, “AUB achieved excellent performance in the first half of 2022 in terms of both financial and operational results through robust risk management and intelligent cost control measures and continuing focus on the sourcing of remunerative cross border business flows. Our results demonstrate AUB’s strong ability to deliver sustainable earnings on a consistent basis through its diversified business model across the Gulf and Mena region.”
Mr Al Othman added, “The offer document received from Kuwait Finance House (KFH) provides an opportunity to our shareholders to consider, in a structured manner, the creation of a major regional banking institution capable of competing more effectively in its existing and new potential markets. This proposed acquisition is in line with the longstanding strategy adopted by AUB’s board since inception in 2000, for pursuing inorganic growth in our targeted markets through mergers and acquisitions. The KFH acquisition involves a potential transformational deal to create a Sharia-compliant market leader in the regional and global banking space and to provide a very solid platform for achieving shareholder and corporate aspirations.”
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