Ahli United Bank announces higher quarterly, half-year 2021 profits

TDT | Manama

The Daily Tribune – www.newsofbahrain.com

Ahli United Bank yesterday reported a 13.9% increase in its second-quarter 2021 profits driven mainly by increases in net interest income and lower provisions. “Global and regional economies are showing signs of recovery encouraged by the progressive roll-out of vaccines for Covid-19. Uncertainty remains due to the risk of new mutant waves and their implications on different countries which are gradually opening up the free movement of people locally and internationally.

Against the backdrop of the still-evolving pandemic, AUB achieved very satisfactory performance in the first half of 2021 and is carefully planning its next steps for the balance of the year,” AUB Chairman, Meshal Al Othman.

Q2 results

Net profit attributable to AUB’s equity shareholders was US$ 138.9 million, which represents a 13.9% increase over US$ 122.0 m in the year-ago quarter.

Earnings per Share were US 1.2 cents versus US 1.0 cents in Q2 2020. Comprehensive income attributable to the owners of the bank was US$ 162.9 m, a decrease of 16.1% from US$ 194.3 m in the prior-year quarter. Net interest income was US$ 214.7 m (Q2/2020: US$ 192.9 m, +11.3%) and total operating income was US$ 261.2 m (Q2/2020: US$ 256.8 m, +1.7%).

H1 results

Net profit attributable to AUB equity shareholders was US$ 298.6 m, which represents a 1.7% increase over US$ 293.4 m in the prior-year period. AUB attributed the increase to a rise in net interest margins and lower provisioning requirements given the exceptional precautionary provisions raised in H1/2020 to adjust with the heightened levels of macro-economic and sectoral risks following the outbreak of the Covid-19 pandemic.

Earnings per Share were the US 2.8 cents, compared to US 2.7 cents in H1/2020. Comprehensive income attributable to the owners of the bank was US$ 337.8 m (H1/2020: US$ 157.3 m, +114.7%).

Net interest income was US$ 421.7 m (H1/2020: US$ 406.7 million, +3.7%) primarily due to improved spreads, reduced liquidity premia and stable market conditions.

Total operating income was US$ 552.2 m (H1/2020: US$ 575.6 m, -4.1%). The non-performing loans ratio was lower at 2.5% (31 December 2020: 2.6%) with specific provision coverage of 83.9% (31 December 2020: 85.9%).