Flip through the latest issue of Gulf Weekly.
Ahli United Bank (AUB) reported a net profit of $135.9 million (H1/2009: $143.5 million) for the six months ended June 30, 2010, a 5.3 per cent drop compared to the corresponding period last.
The results were driven by an increase in net interest income to $239.2 million resulting from judicious management of funding costs resulting in improving margins and prudent deployment of liquidity in risk assets.
Loans and advances grew by five per cent to $14.0 billion funded by a 7.7 per cent growth in customer deposits. Total deposits grew by $1.4 billion to $20.2 billion.
The bank reduced the loan loss provision charge this year to $80.2 million through focused risk management measures.
Overall, the group's return on average equity stood at 12.3 per cent and its return on average assets is at 1.2 per cent in H1/2010.
The resultant basic and diluted earnings per share stood at 2.8 US cents for the half year.
This quarter also saw the successful conversion of AUB's 75 per cent subsidiary, BKME, into a full fledged Sharia-compliant bank and its consequent rebranding as Ahli United Bank, Kuwait, effective April 1.
'It is encouraging to note that the bank has delivered a profitable first half of what still remains a challenging year with improving quarter on quarter performance. It is also positive to note that both S&P and Capital Intelligence have re-affirmed their ratings for AUB at 'A-' (stable) and 'A' (stable) respectively,' said Fahad Al Rajaan, chairman, AUB.
'In parallel to the improvement in our financial performance, we have continued to make progress on our strategy of taking the group to new markets and further consolidating our ownership status in existing AUB Group banks.
'During 2010, we have increased our stake in AUB (Egypt) to 85.1 per cent through two tender offers. We have also concluded a 40 per cent stake acquisition in United Bank for Commerce & Investment (UBCI) in Libya which opens a new market for the AUB Group.
'Furthermore, a tender offer is currently in process to increase our stake in Commercial Bank of Iraq (CBIQ) from 49 per cent to 60 per cent subject to market response.
'These moves are all integral to our business model of building a stronger regional banking platform focused on meeting our clients' cross-borders needs and delivering outstanding value to our customers across the region and beyond,' Mr Al Rajaan added.
