KUWAIT: Ahli United Bank B.S.C. (AUB) reported a net profit attributable to its equity shareholders of $419.2 million for the nine months ended 30 September 2015, an increase of 11.4% as compared to $376.3 million achieved in YTD Q3/2014. Adjusted for net exceptional gain of $24.2 million on sale of investments, YTD Q3/2015 net profit is $ 395.0 million, a 5.0% increase over the same period reported profit in 2014. The net profit achieved for the third quarter of 2015 was US$ 140.9 million, a 23.8% increase over the 2014 third quarter reported profit of $ 113.8 million. The Basic Earnings per Share in YTD Q3/2015 increased to US 6.5 cents, from US 6.0 cents in YTD Q3/2014.
The growth in the operating results of AUB was underpinned by the growth in its core banking income lines. Net interest income grew by 4.5% from $578.7 million to $604.8 million, while fee income grew by 6.0% from US$ 111.5 million to $118.2 million. The bank’s focus on adopting a judicious “intelligent spend” approach, improved the cost income ratio to 27.5% (YTD Q3 / 2014: 28.9%). This surge in operating profit was achieved despite the continued challenging economic regional and international environment.
Prudent risk management and monitoring sustained its asset quality with the non-performing loans ratio standing at 2.1% (31 December 2014: 2.0%) while the specific provision coverage ratio improved to 84.2% (31 December 2014: 83.8%). Total provision coverage ratio, inclusive of collective impairment provisions, rose to 166.1% as at 30September 2015 (31 December 2014: 159.4%).
