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EDITOR IN CHIEF- ABDULLAH BIN SALIM AL SHUEILI

AUB net profit surges by 6.2 per cent to $570.6m

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MUSCAT: Ahli United Bank BSC (AUB) reported a net profit attributable to its equity shareholders of $570.6 million for the year 2016, representing a growth of 6.2 per cent compared to a net profit of $537.2 million in 2015. The net profit in Q4/2016 was $128.5 million as compared to $118.0 million in Q4/2015. Despite the continuing general weakness in the regional and global economies, the positive operating results of AUB were underpinned by prudent risk taking, effective asset and liability management and judicious cost controls. Net interest income (NII) grew by 1.7 per cent from $814.7 million to $828.2 million. The NII increase was achieved through a prudent re-deployment of funds within a conservative and diversified risk framework. Fees, commissions and other income grew by 9.7 per cent (+ $15.4 million) to $173.3 million. As a result, total operating income grew by 5.2 per cent to reach $1,149.0 million (2015: $1,091.9 million). The intelligent cost spend discipline instilled across all AUB Group units was sustained resulting in an improvement of the cost income ratio to 27.8 per cent (2015: 28.3 per cent).


The non-performing loan ratio was contained at 2.3 per cent as at December 31, 2016 while maintaining a very solid specific provision coverage ratio of 84.9 per cent (December 31, 2015: 84.6 per cent). The total provision coverage ratio was 155.6 per cent (2015: 181.9 per cent). Overall Return on Average Equity (ROAE) increased to 15.7 per cent (2015: 15.6 per cent) while the Return on Average Assets (ROAA) increased to 1.8 per cent (2015: 1.7 per cent). The resultant basic earnings per share were US cents 8.0 for the year ended on December 31, 2016 (2015: US cents 7.7). Given the satisfactory results for the year, the Board of Directors has recommended distribution comprising a cash dividend of US cents 4.5 per share (2015: US cents 4.5) together with a bonus ordinary share issue of 10 per cent (2015: 5 per cent).


Hamad al Humaidhi (pictured), AUB Chairman, commented: “Despite the economic and security challenges faced in its operating markets, AUB continued its robust performance in 2016 maintaining growth in core earnings and operating net profit.  The 2016 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 AUB well.  During the year, AUB succeeded in expanding its geographic reach by opening its fully owned subsidiary Ahli United Bank Limited (AUBL) in Dubai International Financial Centre (DIFC), UAE.”


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