AUB reports profit of US$154.6 Million in Q1

Manama  : Ahli United Bank BSC (AUB) reported a net profit attributable to its equity shareholders of US$154.6 million for the quarter ended 31 March 2016. 

The net profit reflected an increase of 5.0 per cent in Q1/2016 as compared to the net profit figure of US$147.2m achieved in the year earlier quarter. The profit also represents a 31.0pc improvement over the Q4/2015 trailing quarter reported profit of US$118.0m. 

The basic Earnings per Share in Q1/2016 were US2.3 cents, compared to US2.2 cents in the prior year quarter. 

Despite continuing weak economic trends into 2016, AUB continued to grow its operating income underpinned by an effective balance sheet management strategy, with net interest income (NII) rising by 5.5pc to US$201.3m during the quarter. Total operating income grew by 6.3pc from US$263.9m to US$280.5m.
The cost income ratio improved to 28.1pc (Q1/2015:28.5pc).  

Solid asset quality levels were sustained with the non-performing loans ratio standing unchanged at 1.8pc (31 December 2015: 1.8pc) while the specific provision coverage ratio stood at 84.0pc (31 December 2015: 84.6pc). The total provision coverage ratio, inclusive of collective impairment provisions, was 181.8pc as at 31 March 2016 (31 December 2015: 181.9pc).

 The Group’s Return on Average Equity (ROAE) for Q1/2016, increased to 17.6pc, compared to the ROAE of 17.5pc achieved in the first quarter of 2015. Return on Average Assets also increased to 2.0pc for Q1/2016 (Q1/2015: 1.9pc). 

Hamad Al Humaidhi, AUB Chairman, commented: “AUB continued its strong and steady performance in Q1/2016 underpinned by the viability of the Bank’s core regional business model based on diversification and cross border flows”.