Ahli United Bank achieves $311m net profit

Muscat: Ahli United Bank reported a record net profit of $311.3 million for the half year ended June 30, 2017, up by 3.4 per cent compared to the net profit of $301.2 million in the first half of 2016. The second quarter net profit of $151.9 million represents a 3.6 per cent improvement over the same period of last year at $146.6 million. The basic earnings per share in the first half was 3.9 cents, as compared to 3.8 cents for the same period of last year.
Net Interest income improved by 2.1 per cent year-on-year driven by loan growth and improved margins. Despite generally weak operating conditions, loans recorded moderate growth across the AUB Group funded through an increase in customer deposits, while deploying the additional liquidity surplus into investment grade securities. Operating results were supported by the Bank’s sustained cost efficiencies achieving a cost to income ratio of 27.5 per cent.
The non-performing loans ratio stood at 2.4 per cent with an unchanged 85 per cent specific coverage ratio. The total provision coverage ratio, inclusive of collective impairment provisions, was 153.3 per cent as at June 30, 2017.
The AUB Group’s return on average equity (ROAE) for the first half of 2017 increased to 16.7 per cent, compared to the ROAE of 16.6 per cent achieved in the half year of 2016.
“Our results demonstrate AUB’s ability to deliver sustainable core earnings on a consistent basis through its diversified strategic investments across the Gulf and Mena region. Growth was prudently achieved across all our business segments, assisted by robust risk management, tight cost containment measures and focus on the sourcing of cross border opportunities,” said Hamad Al-Humaidhi, AUB Chairman.