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AUB REPORTS H1/2016 NET PROFIT OF US$ 301.2 MILLION ATTRIBUTABLE TO ITS SHAREHOLDERS

Ahli United Bank B.S.C. (AUB) reported a record net profit of US$ 301.2 million attributable to its equity shareholders for the half year ended 30 June 2016. The net profit reflected an increase of 8.2% in H1/2016 as compared to the net profit figure of US$ 278.4 million achieved in H1/2015. The Q2/2016 net profit of US$ 146.6 million represents a 11.7% improvement over the Q2/2015 reported profit of US$ 131.2 million. The Basic Earnings per Share in H1/2016 were US 4.2 cents, as compared to US 4.1 cents in H1/2015.

AUB continued to grow its operating income with net interest income (NII) rising by 4.0% to US$ 407.4 million during the period. Total operating income grew by 7.8% from US$ 529.3 million to US$ 570.9 million. The cost income ratio improved to 27.7% (H1/2015: 28.8%).

The non-performing loans ratio at H1/2016 stood at 2.1% (31 December 2015: 1.8%) with an enhanced specific provision coverage ratio of 85.3% (31 December 2015: 84.6%). The total provision coverage ratio, inclusive of collective impairment provisions, was 177.0% as at 30 June 2016 (31 December 2015: 181.9%). Both specific and total coverage ratios are exclusive of the significant available collaterals against impaired assets.

The Group’s Return on Average Equity (ROAE) for H1/2016, increased to 17.4%, compared to the ROAE of 16.7% achieved in the half year of 2015. Return on Average Assets also increased to 1.9% (H1/2015: 1.8%).

Mr. Hamad Al-Humaidhi, AUB Chairman, commented: “The strong results for H1/2016 are a record and represent clear testimony to AUB’s well-managed and resilient business model based on regional diversification and cross border flows as well as proof of the success of its balance-sheet management initiatives to increase operating income and mitigate risk challenges in its target markets despite continuing weak economic conditions in 2016”.

“AUB is currently not expecting any material impact on its asset quality or overall performance due to the BREXIT event, given the concentration of its UK exposures in good quality secured assets and the ongoing application of robust credit underwriting standards and very conservative loan to value (LTVs) policy guidelines. I am optimistic that AUB is well positioned to meet and handle the emerging challenges arising out of evolving global market conditions post BREXIT and other geo-political developments”, added Mr. Al-Humaidhi.

AUB REPORTS Q1/2016 NET PROFIT OF US$ 154.6 MILLION ATTRIBUTABLE TO ITS SHAREHOLDERS

Ahli United Bank B.S.C. (AUB) reported a net profit attributable to its equity shareholders of US$ 154.6 million for the quarter ended 31 March 2016. The net profit reflected an increase of 5.0% in Q1/2016 as compared to the net profit figure of US$ 147.2 million achieved in Q1/2015. The Q1/2016 net profit also represents a 31.0% improvement over the Q4/2015 trailing quarter reported profit of US$ 118.0 million. The Basic Earnings per Share in Q1/2016 were US 2.3 cents, compared to US 2.2 cents in Q1/2015.

Despite continuing weak economic trends into 2016, AUB continued to grow its operating income underpinned by an effective balance sheet management strategy, with net interest income (NII) rising by 5.5% to US$ 201.3 million during the quarter. Total operating income grew by 6.3% from US$ 263.9 million to US$ 280.5 million. The cost income ratio improved to 28.1% (Q1/2015: 28.5%).

Solid asset quality levels were sustained with the non-performing loans ratio standing unchanged at 1.8% (31 December 2015: 1.8%) while the specific provision coverage ratio stood at 84.0% (31 December 2015: 84.6%). The total provision coverage ratio, inclusive of collective impairment provisions, was 181.8% as at 31 March 2016 (31 December 2015: 181.9%).

The Group’s Return on Average Equity (ROAE) for Q1/2016, increased to 17.6%, compared to the ROAE of 17.5% achieved in the first quarter of 2015. Return on Average Assets also increased to 2.0% for Q1/2016 (Q1/2015: 1.9%).

Mr. Hamad Al-Humaidhi, AUB Chairman, commented: “AUB continued its strong and steady performance in Q1/2016 underpinned by the viability of the Bank’s core regional business model based on diversification and cross border flows”.

“In March 2016, the Bank succeeded in expanding its geographic reach further by opening its fully owned subsidiary Ahli United Bank Limited (AUBL) in Dubai International Financial Centre (DIFC), UAE. AUBL is the first bank in the GCC region to receive the Category 1 License from Dubai Financial Services Authority (DFSA). This launch enables AUB to offer corporate banking, private banking, wealth management, trade finance, treasury and cross-border financial products and services to its clients based in the UAE as well as in the wider Middle East region. All these products and services are available on a conventional as well as a Shari’a compliant basis through AUBL. The launch of AUBL represents an important addition to the AUB group banks and a key step forward in pursuing its defined strategy of targeted regional expansion, with emphasis on increasing cross border business flows. ” added Mr. Al-Humaidhi.

AUB NET PROFIT SURGES BY 11.3% TO US$ 537.2 MILLION IN 2015

Ahli United Bank B.S.C. (AUB) reported a record net profit attributable to its equity shareholders of US$ 537.2 million for the year 2015, representing a growth of 11.3% compared to a net profit of US$ 482.5 million in 2014. The net profit in Q4/2015 was US$ 118.0 million as compared to US$ 106.2 million in Q4/2014.

The positive operating results of AUB were primarily driven by the growth in its core operating earnings across its major lines of business and markets, despite the continuing general weakness in economic trends regionally and globally, witnessed during 2015. The surge in operating income was underpinned by a 6.7% rise in net interest income (NII) to US$ 814.7 million despite the prevalence of very low absolute interest rate levels. The NII increase was achieved through a moderated increase in lending volumes as well as by a prudent deployment of liquidity in non-trading high quality investments within a conservative and diversified risk framework. The result was also complemented through focused liability cost management which improved NII margins. Total operating income grew by 4.9% to reach US$ 1,091.9 million (2014: US$ 1,041.3 million).The higher operating income and disciplined cost culture across the AUB Group further improved the operating cost income ratio to 28.3% (2014: 29.2%).

The Group’s total assets increased by 1.6% to reach US$ 34.0 billion at 31 December 2015 from US$ 33.4 billion as at 2014 year-end. The growth in total assets was primarily due to a 4.8% growth in the loans and advances portfolio to reach US$ 19.4 billion (31 December 2014: US$ 18.5 billion). Balanced credit growth was supported by a 2.1% growth in customer deposits to reach US$ 23.5 billion (31 December 2014: US$ 23.0 billion). The non-performing loan ratio reduced to 1.8% as at 31 December 2015 (31 December 2014: 2.0%) with a healthy specific provision coverage ratio of 84.6% (31 December 2014: 83.8%). The total provision coverage ratio, inclusive of collective impairment provisions, was also increased to 181.9% as at 31 December 2015 (31 December 2014: 159.4%) as part of the AUB Group’s effort to enhance its risk coverage position.

Through improved earnings and judicious cost management, return on Average Equity increased to 16.0% (2014: 15.2%) while the return on Average Assets increased to 1.7% (2014: 1.6%).

The resultant basic earnings per share were US cents 8.1 for the year ended 31 December 2015 (2014: US cents 7.6). Given the challenging business environment, the Board of Directors has recommended unchanged distribution comprising a cash dividend of US cents 4.5 per share (2014: US cents 4.5) together with a bonus ordinary share issue of 5% (2014: 5%).

Mr. Hamad Al-Humaidhi, AUB Chairman, commented: ”AUB continued its robust performance in 2015 crossing for the first time US$ 500 million benchmark in terms of operating net profit, in the face of strong economic headwinds. The 2015 result is a testament to AUB’s well-managed business model based on diversification, targeting of cross border flows and selective growth initiatives to increase operating income that continue to serve the Bank well. AUB is also proud to have successfully completed a US$ 400 million issue of Additional Tier 1 Perpetual Basel III Compliant Capital Securities in April 2015 at a very competitive pricing under very challenging market conditions. This represents an important step forward in terms of the evolution and diversification of the Group’s capital structure.“

”While risks to the global economic outlook remain high and a continuing slowdown in regional economies looms large, AUB remains cautiously confident of its resilience and ability to maintain its performance given its strong underlying operating fundamentals and its prudent, proactive management of risks and costs.“ added Mr. Al-Humaidhi.