Ahli United proft drops 23pc
Manama, May 1, 2010
Ahli United Bank (AUB) reported a net profit of $65.7 million for the three-month period ended on March 31 this year.
This was a drop of 23.5 per cent compared to $85.9 million for the same period last year.
This result represents a substantial rise of 284 per cent over the trailing profit for the fourth quarter last year of $17.1 million and reflects a strong improvement in core earnings net of exceptional items relative to the comparative period last year.
The group's net profit was achieved on the back of an increased net interest margin of 2.4pc in the first quarter of this year compared to 2.3pc in the same period last year while prudently growing the loans and advances portfolio of $13.6 billion by 2.3pc over the December 31 last year balances of $13.3bn.
This generated a net interest income of $117.1 million, an increase of 9.4pc over the first quarter last year. The group's net interest margins have been sustained, underpinned by its focused asset liability management.
This year's-first quarter results include a loan loss provision charge of $51.8 million, compared to $47 million in the first quarter last year which enabled the bank to fully provide for its exposures to specific impaired Saudi corporate assets.
The bank's focused efforts on streamlined process efficiencies and cost control helped further contain its total operating expenses at $58.9 million compared to $60.4 million for the same period last year.
The resultant cost income ratio for the first quarter of this year was a low 31.9pc. Basic and dilutive earnings per ordinary share was 1.3 cents.
The group's total assets stood at $24.7 billion, an increase of 4.7pc, funded largely by a growth in customers' deposits by 6.6pc to $14.1 billion over the $13.2 billion as at December 31 last year.
AUB also raised its stake in Ahli United Bank Egypt (AUBE) from 35.3pc to 79.6pc through a path-breaking mandatory dual tender offer which was successfully concluded in January.
'The year 2010 remains a challenging year. However we take comfort in the overall resilience demonstrated by the bank in the first quarter of this year,' AUB chairman Fahad Al Rajaan said.
'It is gratifying to note our ability to maintain unwaveringly high counterparty and customers' confidence at all times and to improve our core operating earnings.' he said.
'In March this year, we have entered the promising Libyan market by way of a 40pc stake acquisition in United Bank for Commerce and Investment.
'We have also secured a 10-year renewable technical services agreement to provide management and technical services to this bank.
'This new market entry further demonstrates our commitment to our regional growth strategy applied in a phased and business justifiable manner,' added Al Rajaan. -TradeArabia News Service
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