Ahli United Bank reports net profit of $174.7 million

Muscat: Ahli United Bank (AUB) reported a net profit attributable to its equity shareholders of $174.7 million for the quarter ended on March 31, 2018. The net profit reflected an increase of 9.6 per cent in first quarter of 2018 as compared to the net profit of $159.4 million achieved in first quarter of 2017. The first quarter 2018 net profit also represents a 16.5 per cent improvement over the fourth quarter 2017 trailing quarter reported profit of $150.0 million.
Net interest income improved by 12.4 per cent to $229.3 million during the quarter driven by loan and investments growth besides improved margins. Operating income grew by 7.5 per cent which together with consistent application of operational efficiencies resulted in the bank’s cost to income ratio of 25.9 per cent.
Solid asset quality levels were sustained with a non-performing loans ratio of 1.9 per cent (December 31, 2017: 1.9 per cent) while specific provision coverage ratio increased to 87.1 per cent (December 31, 2017: 85.1 per cent). The total provision coverage ratio inclusive of expected credit loss provisioning under IFRS 9 but excluding available significant asset collaterals, improved to 219.2 per cent as of March 31, 2018 (December 31, 2017: 154.3 per cent).
The Group’s Return on Average Equity (ROAE) for first quarter of 2018, increased to 18.2 per cent, compared to 17.0 per cent achieved in the first quarter of 2017. Return on Average Assets also increased to 2.3 per cent for first quarter of 2018 (first quarter of 2017: 2.2 per cent).
Hamad Al Humaidhi, AUB Chairman, commented: “Our results demonstrate AUB’s resilience and ability to deliver sustainable core earnings on a consistent basis under its diversified well managed business model and through its strategic investments across multiple markets, assisted by robust risk management, effective cost control measures and ongoing focus on the sourcing of cross border business flows.”