AUB reports H1 net profit of US$ 377.5m

Ahli United Bank (AUB) yesterday reported a 5.6 per cent increase in firsthalf 2019 net profit attributable to its equity shareholders to US$ 377.5 million helped by increases in net interest income attributable to growth in average loans and investments. In the first half of 2018, net profit was US$357.4m.

Basic earnings per share in H1were US 4.1 cents (+5.1pc), compared to US 3.9 cents in 2018. In the second quarter of 2019, net profit was US$ 184.7m, represents a 1.1pc improvement over a profit of US$ 182.7m in the year-ago quarter. (EPS: US 1.9 cents in Q2/2019 versus US 1.9 cents in Q2/2018). Operating income grew by 2.9pc to US$ 630.1m during the first six months of 2019 driven by an increase in net interest income. Net interest income grew by US$ 22.9m (+4.9pc) to US$ 490.2m in H1/2019 compared to US$ 467.2m in H1/2018 attributable to growth in average loans and investments.

Net operating income increased (+4.5pc) from US$ 570.1m in H1/2018 to US$ 595.8m in H1/2019. Cost to income ratio stood at 26.5pc (H1/2018: 26.1pc) reflecting the continuous focus on the rigorous implementation of broadbased cost discipline and an intelligent spend approach. Solid asset quality levels were maintained with a non-performing loans ratio of 2.0pc (31 December 2018: 1.9pc) with a specific provision coverage ratio of 85.1pc (31 December 2018: 85.5pc) and a total provision coverage ratio of 188.6pc (31 December 2018: 214.7pc).

Meshal Al-Othman, AUB Chairman, commented: “Despite mounting geopolitical tension in the region and subdued operating environments in AUB’s major markets, AUB continued its robust performance in the first half of 2019 maintaining prudent and healthy growth in core earnings and operating net profit. Growth, Al Othman said, was underpinned by robust risk management and continuous focus to ensure the effective deployment of capital resources across the AUB Group’s current and targeted markets.”