Ahli United Bank B.S.C. Reports a Net Profit of Us$ 192.9 Million Attributable to Owners of The Bank for Q1/2019
Ahli United Bank B.S.C. (AUB) stated a net profit attributable to its equity shareholders of US$ 192.9 million for the quarter ended 31 March 2019. The net profit reflected an upsurge of 10.4% in Q1/2019 as compared to the net profit of US$ 174.7 million achieved in Q1/2018. The Q1/2019 net profit also represents a 13.9% improvement over the Q4/2018 trailing quarter reported profit of US$ 169.3 million. The Basic Earnings per Share in Q1/2019 were US 2.2 cents (+10.0%), compared to US 2.0 cents in Q1/2018.
Operating income raised by 6.6% to US$ 311.9 million (Q1/2018: US$ 292.6 million) mainly driven by an increase in net interest income by US$ 13.9 million (+6.1%) to US$ 243.3 million (Q1/2018: US$ 229.3 million) attributable to growth in loans and investments and to effective interest rate risk management. Net operating income increased from US$ 279.4 million in Q1/2018 to US$ 298.4 million in Q1/2019 (+6.8%).
Operating outcomes continued to be reinforced by operational efficiencies resulting in an enhanced cost to income ratio of 25.6% (Q1/2018: 25.9%).
In spite of challenging operating conditions, solid asset quality levels were continued with a non-performing loans ratio of 1.8% (31 December 2018: 1.9%) while specific provision coverage ratio increased to 85.6% (31 December 2018: 85.5%). The total provision coverage ratio, excluding the available significant asset collaterals, improved to 222.7% as at 31 March 2019 (31 December 2018: 214.7%).
The Groups total assets at 31 March 2019 increased by 4.2% to US$ 37.0 billion (31 December 2018: US$ 35.5 billion). Return on Average Assets was sustained at 2.3% for Q1/2019 (Q1/2018: 2.3%). The Groups equity attributable to owners at 31 March 2019 stood at US$ 3.7 billion (31 December 2018: US$ 3.9 billion) post deduction of 2018 year end appropriations totalling US$ 399.8 million. The Groups Return on Average Equity (ROAE) for Q1/2019, improved to 18.7%, compared to 18.2% achieved in Q1/2018.
Mr. Meshal Al-Othman, AUB Chairman, commented: Our continued growth in Q1/2019 demonstrates AUBs resilience and ability to deliver sustainable core earnings on a consistent basis under its diversified well managed business model. AUBs strategic investments across multiple markets, robust risk management, intelligent cost control measures and ongoing focus on the sourcing of cross border business flows has helped achieve its net profit growth for Q1/2019, while maintaining solid asset quality parameters and tight cost discipline.
