AUB profit jumps 34.3% to US$ 607.2 million, recommends dividend

TDT | Manama

The Daily Tribune – www.newsofbahrain.com

Ahli United Bank reported a net profit attributable to its equity shareholders of US$ 156.6 million for Q4/2021, which represents a 265% increase over the Q4/2020 reported a net profit of US$ 42.9 m driven by an increase in net interest income and a lower level of net credit provision charges.

Earnings per Share were US 1.3 cents in Q4/2021 versus US 0.3 cents in Q4/2020.

Comprehensive income attributable to the owners of the bank for Q4/2021 was US$ 147.5 m (Q4/2020: US$ 47.9 m, +208.1%).

Net interest income was US$ 227.6 m in Q4/2021 (Q4/2020: US$ 199.4 m, +14.1%).

Full-year results

Net profit attributable to its equity shareholders was US$ 607.2 m, representing a 34.3% increase over the 2020 reported profit of US$ 452.2 m mainly driven by credit growth aided by effective balance-sheet management and the reduction in credit provision charges supported by overall economic improvement.

Earnings per Share increased to US 5.6 cents as compared to US 4.1 cents in 2020.

Comprehensive income attributable to the owners of the bank was US$ 641.2 m (2020: US$ 334.9 m, +91.5%).

Net interest income was US$ 871.8 m (2020: US$ 799.4 m, +9.1%) achieved through prudent asset growth and reduction in funding costs given lower liquidity premia.

The non-performing loans ratio was lower at 2.4% (31 December 2020: 2.6%) with a very solid specific provision coverage of 83.1% (31 December 2020: 85.9%).

Provision coverage levels are calculated on a cash provision basis excluding the value of the substantial additional non-cash (real estate and securities) collaterals assigned against non-performing loans.

Dividend

The Board of Directors has recommended a distribution comprising of a cash dividend of US cents 3.0 per share (2020: US cents 1.25 per share) together with a bonus ordinary share issue of 10% (2020: 5%), subject to AUB Annual General Assembly approval.

The AUB Chairman, Meshal Al Othman, commented: “Going forward, AUB will continue to prudently navigate the challenging and unprecedented times by providing a safe operating environment for all staff, clients and counterparties, by expanding and updating its seamless remote capabilities to transact business and support all our client needs as well as by protecting and developing its core earnings capacity through organic and inorganic measures”.