AUB records $ 570.6 m net profit

Manama : Ahli United Bank B.S.C. (AUB) reported a net profit attributable to its equity shareholders of US$ 570.6 million for the year 2016, representing a growth of 6.2 pc compared to a net profit of US$ 537.2 m in 2015. The net profit in Q4/2016 was $ 128.5 m as compared to $ 118.0 m in Q4/2015. 

Net interest income (NII) grew by 1.7pc from $ 814.7 m to $ 828.2 m. Fees, commissions & other income grew by 9.7pc (+$ 15.4 m) to $ 173.3 m. As a result, total operating income grew by 5.2 pc to reach $ 1,149.0 m (2015: $ 1,091.9 m). The intelligent cost spend discipline instilled across all AUB Group units was sustained resulting in an improvement of the cost income ratio to 27.8pc (2015: 28.3pc). 

The non-performing loan ratio was contained at 2.3 pc as at December 31, 2016 while maintaining a very solid specific provision coverage ratio of 84.9 pc (31 December 2015: 84.6pc). The total provision coverage ratio was 155.6pc (2015: 181.9pc). 

Overall Return on Average Equity (ROAE) increased to 15.7pc (2015: 15.6pc) while the Return on Average Assets (ROAA) increased to 1.8pc (2015: 1.7pc).

The resultant basic earnings per share were US cents 8.0 for the year ended 31 December 2016 (2015: US cents 7.7). 

The Board of Directors has recommended distribution comprising a cash dividend of US cents 4.5 per share (2015: US cents 4.5) together with a bonus ordinary share issue of 10 pc (2015: 5pc). 

 “ The 2016 result is a testament to AUB’s well-managed business model based on diversification, targeting of cross border flows and selective growth initiatives to increase operating income that continue to serve AUB well. While operating challenges remain strong, AUB looks forward to 2017 with focused plans and objectives to advance our regional strategy in a balanced and prudent manner” Hamad Al-Humaidhi, AUB Chairman, said.