Bahrain-based Ahli United Bank has reported a record net profit attributable to its equity shareholders of $537.2 million for the year 2015, representing a growth of 11.3 per cent compared to a net profit of $482.5 million in 2014.

The net profit in the fourth quarter (Q4) of 2015 was $118.0 million as compared to $106.2 million in Q4 2014.

The positive operating results of AUB were primarily driven by the growth in its core operating earnings across its major lines of business and markets, despite the continuing general weakness in economic trends regionally and globally, witnessed during 2015.

The surge in operating income was underpinned by a 6.7 per cent rise in net interest income (NII) to $814.7 million despite the prevalence of very low absolute interest rate levels. The NII increase was achieved through a moderated increase in lending volumes as well as by a prudent deployment of liquidity in non-trading high quality investments within a conservative and diversified risk framework.

The result was also complemented through focused liability cost management which improved NII margins. Total operating income grew by 4.9 per cent to reach $1,091.9 million (2014: $1,041.3 million).The higher operating income and disciplined cost culture across the AUB Group further improved the operating cost income ratio to 28.3 per cent (2014: 29.2 per cent).

The Group’s total assets increased by 1.6 per cent to reach $34.0 billion at 31 December 2015 from $33.4 billion as at 2014 year-end.

Hamad Al-Humaidhi, AUB chairman, said: “AUB continued its robust performance in 2015 crossing for the first time $500 million benchmark in terms of operating net profit, in the face of strong economic headwinds.”
“The 2015 result is a testament to AUB’s well-managed business model based on diversification, targeting of cross border flows and selective growth initiatives to increase operating income that continue to serve the Bank well.

“AUB is also proud to have successfully completed a $400 million issue of Additional Tier 1 Perpetual Basel III Compliant Capital Securities in April 2015 at a very competitive pricing under very challenging market conditions. This represents an important step forward in terms of the evolution and diversification of the Group’s capital structure.”

“While risks to the global economic outlook remain high and a continuing slowdown in regional economies looms large, AUB remains cautiously confident of its resilience and ability to maintain its performance given its strong underlying operating fundamentals and its prudent, proactive management of risks and costs.” added Al-Humaidhi. – TradeArabia News Service