AUB hits $159.4mn net profit in Q1

Dubai / Emirates Business

Ahli United Bank (AUB) reported a net profit attributable to its equity shareholders of US$159.4 million for the quarter ended March 31. The net profit reflected an increase of 3.1% in the first quarter of this year as compared to the comparative net profit figure of US$ 154.6 million achieved in Q1 2016. The first quarter net profit also represents a 24.0% improvement over the Q4 2016 trailing quarter reported profit of US$128.5 million. The Basic Earnings per Share in Q1 2017 were US 2.1 cents, same as in Q1/2016.
Given the continuing weak operating environment, AUB focused on optimizing its balance sheet management strategy resulting in an increase in net interest income by 1.4% to US$ 204.1 million during the quarter. The cost to income ratio improved to 27.3% (Q1/2016: 27.7%).
Solid asset quality levels were sustained with the non-performing loans ratio improving to 2.2% (December 31, 2016: 2.3%) and the specific provision coverage ratio increasing to 85.3% (December 31, 2016: 84.9%). The total provision coverage ratio, inclusive of collective impairment provisions, was 159.7% as at 31 March (December 31, 2016: 155.6%).
The Group’s Return on Average Equity (ROAE) for Q1/2017, increased to 17.0%, compared to 16.9% achieved in the first quarter of 2016. Return on Average Assets also increased to 2.2% for Q1/2017 (Q1/2016: 2.0%).
Hamad Al-Humaidhi, AUB Chairman, commented: “AUB’s continued growth trajectory in its performance for Q1/2017 is underpinned by our focus on sustainable earnings across multiple markets. AUB’s diversification in its major operating markets and its continued success in expanding cross border business flows between these markets has helped achieve its growth in net profit after tax for Q1/2017, while maintaining solid asset quality parameters.”