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Ahli United Bank reports a net profit of US$ 340.9 Million attributable to owners of the Bank and a return on average equity of 15.3% for the six months ended 30 JUNE 2022

August 5, 2022
banking

Ahli United Bank B.S.C. (AUB) reported a net profit attributable to its equity shareholders of US$
170.0 million for Q2/2022, which represents a 22.3% increase over the Q2/2021 reported profit of
US$ 138.9 million driven by an increase in net interest income as well as fees & commission and
investment income and a lower level of net provision charge for credit losses. Basic and Diluted
Earnings per Share were US 1.3 cents in Q2/2022 versus US 1.1 cents in Q2/2021. Total
comprehensive income attributable to the owners of the bank for Q2/2022 was US$ 113.3 million
(Q2/2021: US$ 162.9 million, -30.5%). Net interest income was US$ 218.6 million in Q2/2022
(Q2/2021: US$ 214.7 million, +1.9%) and total operating income was US$ 292.9 million in
Q2/2022 (Q2/2021: US$ 261.2 million, +12.1%).

AUB reported a net profit attributable to its equity shareholders of US$ 340.9 million for the first
half of year 2022 which represents a 14.2% increase over the H1/2021 reported profit of US$ 298.6
million mainly driven by an increase in net interest income and trading, investment & other
income. Basic and Diluted Earnings per Share in H1/2022 were US 2.9 cents, compared to US
2.5 cents in H1/2021. Total comprehensive income attributable to the owners of the bank for
H1/2022 was US$ 178.9 million (H1/2021: US$ 337.8 million, -47.0%). Net interest income for
H1/2022 was US$ 430.7 million (H1/2021: US$ 421.7 million, +2.2%) primarily achieved through
increase in interest earning assets. Total operating income for the H1/2022 was US$ 603.5 million
(H1/2021: US$ 552.2 million, +9.3%).

As a result of profitability improvement, Return on Average Equity for H1/2022 increased to
15.3% (H1/2021: 14.6%). The AUB Group’s total assets as at 30 June 2022 increased by 4.7% to
US$ 43.9 billion (31 December 2021: US$ 41.9 billion) reflecting prudent balance sheet growth
compatible with the prevailing economic environment in its main operating markets. Return on
Average Assets also improved to 1.7% for H1/2022 (H1/2021: 1.6%). The Group’s equity
attributable to owners at 30 June 2022 decreased by 3.4% to US$ 4.3 billion particularly due to
dividend distribution (31 December 2021: US$ 4.5 billion).

The non-performing loans ratio was at 2.5% (31 December 2021: 2.4%) with specific provision
coverage of 81.1% (31 December 2021: 83.1%). Provision coverage levels are calculated on a cash
provision basis excluding the value of the substantial additional non-cash (real estate and
securities) assigned collaterals available against non-performing loans.

The cost to income ratio for H1/2022 was 28.2% (H1/2021: 27.9%) reflecting AUB’s continuing
efforts to enhance operational efficiencies through the progressive roll-out of automation and
digitization initiatives as part of the AUB Group’s overall transformation plan.

The AUB Chairman, Mr. Meshal Al Othman, commented “AUB achieved excellent performance
in the first half of 2022 in terms of both financial and operational results through robust risk
management and intelligent cost control measures and continuing focus on the sourcing of
remunerative cross border business flows. Our results demonstrate AUB’s strong ability to deliver
sustainable earnings on a consistent basis through its diversified business model across the Gulf
and MENA region.”

Mr. Meshal Al Othman also commented that “The offer document received from KFH Kuwait
Finance House (KFH) provides an opportunity to our shareholders to consider, in a structured
manner, the creation of a major regional banking institution capable of competing more effectively
in its existing and new potential markets. This proposed acquisition is in line with the longstanding
strategy adopted by AUB’s Board of Directors since inception in 2000, for pursuing inorganic
growth in our targeted markets through mergers and acquisitions. The KFH acquisition involves a
potential transformational deal to create a Shari’a compliant market leader in the regional and
global banking space and to provide a very solid platform for achieving shareholder and corporate
aspirations”.

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