Bahrain-based Ahli United Bank (AUB) has reported a net profit of $419.2 million for the nine months ended September 30, an increase of 11.4 per cent as compared to $376.3 million achieved during the same period last year.

Adjusted for net exceptional gain of $24.2 million on sale of investments, year-to-date (YTD) Q3/2015 net profit is $395 million, a 5 per cent increase over the same period reported profit in 2014.

The net profit achieved for the third quarter of 2015 was $140.9 million, a 23.8 per cent increase over the 2014 third quarter reported profit of $113.8 million. The basic earnings per share in YTD Q3/2015 increased to 6.5 cents, from 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 per cent from $578.7 million to $604.8 million, while fee income grew by 6 per cent from $ 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 per cent (YTD Q3 / 2014: 28.9 per cent). 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 per cent (31 December 2014: 2.0 per cent) while the specific provision coverage ratio improved to 84.2 per cent (31 December 2014: 83.8 per cent). Total provision coverage ratio, inclusive of collective impairment provisions, rose to 166.1 per cent as at 30 September 2015 (31 December 2014: 159.4 per cent).

The Group’s return on average equity (ROAE) for YTD Q3/2015 increased to 16.7 per cent, based on improved operating results as compared to 15.9 per cent achieved in the prior period. Return on average assets was higher at 1.8 per cent for YTD Q3/2015 (YTD Q3/2014: 1.6 per cent).

Hamad Al-Humaidhi, AUB chairman, said: “AUB continued its robust performance in the first nine months of 2015 even as regional economic activity moderates and international markets continue to be uncertain and volatile. AUB’s sustained growth reflected in the YTD Q3/2015 result is a testament to AUB’s well-managed business model based on diversification and cross border flows and of the success of its selective growth initiatives to increase operating income and mitigate risk challenges in its target markets.”

“Despite expected upcoming challenges from an unstable global economy and its effect on AUB’s target markets, AUB continues to remain confident of its resilience and ability to maintain its performance given its strong fundamentals and prudent, proactive management of risks and costs. It will continue to seek, identify and tap organic as well as inorganic growth opportunities within an acceptable risk‐return framework,” added Al-Humaidhi. – TradeArabia News Service