AUB Q3 net profit rises 5.9pc

Ahli United Bank (AUB) posted a 5.9 per cent growth in its third-quarter net profit as net operating income climbed. Third-quarter net profit was US$ 180.9 million compared to US$ 170.8m in the same quarter a year ago. Q3 EPS was US 2.1 cents versus US 2.0 cents in Q3, 2018. Net operating income was US$ 284.3m compared to US$ 275.1m in the year-ago quarter.

Nine-month results

For the nine-month ended 30 September 2019, AUB’s net profit attributable to equity shareholders was US$ 558.4m, an increase of 5.7pc from US$ 528.3m in the same period a year ago. Basic Earnings per share was US 6.2 cents (+6.9pc), compared to US 5.8 cents in the prior-year period. AUB attributed the improved performance to benefits arising from its “diversified business model, robust risk management framework and judicious business-driven operating culture.”

Net interest income improved by 2.0pc (+US$ 14.3m) to US$ 722.7m compared to US$ 708.4m in 2018 driven by growth in average loans and investments. Increases in net interest income, trading and investment income resulted in a rise in operating income to US$ 919.3m compared to US$ 907.0m in 2018.

Net operating income increased (+4.1pc) from US$ 845.2m in 2018 to US$ 880.1m in YTD Q3/2019. Cost to income ratio stood at 26.7pc (YTD Q3/2018: 26.2pc) reflecting the consistent implementation of AUB’s structured cost discipline and intelligent spend approach.

Solid asset quality levels were also maintained with a non-performing loans ratio of 2.0pc (31 December 2018: 1.9pc) with a specific provision coverage ratio of 85.2pc (31 December 2018: 85.5pc) and a total provision coverage ratio of 187.0pc (31 December 2018: 214.7pc). Looking ahead, Meshal Alothman, AUB Chairman, said, “AUB sustained its core performance for the first nine months of 2019 and is looking forward to maintaining its positive growth trajectory.”