AUB reports KD 29.0 million net profit for H1, 2018

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Bank’s operating profits grow by 13.7 pct

KUWAIT CITY, July 24: Ahli United Bank (AUB) reported a net profit for the first half of 2018 amounting to KD 29.0 million compared to KD 26.5 million during the same period last year, refl ecting a 9.4% growth. Earnings per share (EPS) reached 15.4 fils as compared with 14.0 fils EPS for the same period last year.

The Bank attributed the increase in net profits to the continued growth of its core revenues, which refl ects an increase in net return on financing which amounted to 6.5% during the first half of 2018. AUB’s operating profits grew to KD 63.9 million as at 30 June 2018, refl ecting a 13.7% increase as compared with KD 56.2 million achieved in the same period last year. Shareholders’ equity increased by 1.5% to reach KD 413.2 million as at the end of the first half as compared with KD 406.9 million as at 31 December 2017. AUB has continued to maintained a sound capital adequacy ratio of 16.4 % being higher than the minimum regulatory required level of 13%.

The Bank has achieved a return on equity and return on assets of 14.0% and 1.6% respectively during the first half of the year, which are amongst the highest in the local market. Total assets, customer deposits and net financing receivables reached KD 3,696 million, KD 2,379 million and KD 2,745 million respectively during the first half of 2018 – all of which are managed in a balanced, precise and secure manner to ensure the generation of higher financial returns.

Commenting on these positive results, AUB’s Chairman, Dr Anwar Al-Mudhaf said, “We are pleased with these positive results which refl ect the Bank’s overall success and progress in a balanced manner, whilst preserving its leadership position across the Islamic banking sector.” “AUB continues to drive its strong performance and once again reaffirms its position, financial strength, successful strategy as well as a diversified and robust assets base.

The Bank’s conservative policy has protected it from negative implications resulting from the global and regional events that directly impact the wider economic environment,” added Dr Al-Mudhaf. Dr Al-Mudhaf further reiterated the positive market outlook with an increase in government capital spending and its expected refl ection across the local operating environment, which will provide more opportunities for banks locally.

Confirming that AUB enjoys a solid legacy and a successful track record being the oldest bank operating in Kuwait for 77 years the Bank has excelled in a large number of achievements across the years and has cemented its leadership role as being more than ready to leverage such opportunities and contributing to the national Kuwaiti financing plan to contribute to economic success – as part of the Kuwait 2035 vision. Dr Al-Mudhaf pointed out that AUB maintains strong credit ratings from global ratings agencies, which directly reflect the Bank’s strategy, strength of its financial capabilities and robust asset quality, along with the experienced executive management, in addition to the trust that customers and shareholders have placed in AUB.

The Bank has continued to receive high credit ratings from international credit rating agencies, such as Fitch, Moody’s and Capital Intelligence. The Bank maintained a credit rating of “A+” on the long term and “F1” on the short term with stable outlook by Fitch Ratings Agency, and “A2” on the local currency with stable outlook by Moody’s. Capital Intelligence affirmed the Bank’s long term credit rating of foreign currency to “A+” and enhanced the short term foreign currency rating to “A2”.

All these ratings confirm the credit standing, capital quality, and stability of the Bank for future growth. Richard Groves, AUB’s CEO also said, “AUB has maintained a leadership position in Kuwait, thanks to the overarching strategy and continuous strong performance across multiple fronts.” During the course of the current year, AUB won a number of prominent awards including ‘Best Retail Bank in Kuwait 2018’ and the ‘Best Retail Marketing Kuwait 2018’ award from Global Banking and Finance Review.

These awards are a testament to the Bank’s significant achievements across retail banking, which reflects its efforts in further developing and tailoring banking solutions that facilitate customers banking experiences and making them more flexible and efficient. The Bank has a deep commitment to reinforcing customers’ experiences by providing added value banking services as well as a keen investment in technology, providing a network of branches that provide high quality services. AUB won the ‘Best Private Banking Bank in Kuwait 2018’ award from The Banker Middle East – the region’s top financial publication.

The award reflects the Bank’s overall vision as a strong financial organization that adopts best international practices. The Bank also won the ‘Best Human Resources Award in Kuwait’ from CPI Financials Banker Middle East, one of the region’s most leading financial magazines. The award came in recognition of the Bank’s achievements in different fields of Human Resources, reflecting the best practices endorsed in the Human Resources Department. AUB also won the coveted Health, Safety and Environment (HSE) 2018 award from the American Society of Safety Engineers (ASSE) – Kuwait Chapter.

The accolade recognizes the Bank’s ongoing efforts and commitment to alleviate the risks in the workplace and to the awareness of the principles and requirements of safety and health. AUB was also able to move ahead with its plan to embrace the latest banking technological developments and digital transformation to continue its strategy in the field of development and innovation. During 2018, the Bank launched a new partnership with Ajar Online Services to promote the growth of real estate rental payments through digital channels which provides comfort to tenants and property owners.

In cooperation with Automated Services Network Company (eNet), the Bank also has successfully launched the service of bill payments of all major telecommunications companies in Kuwait, through the Bank’s online banking service and mobile banking application. Finally, in concluding his statement, Dr. Al-Mudhaf extended his thanks and appreciation to the Central Bank of Kuwait, the Bank’s Board of Directors, customers, shareholders, management and staff for the confidence and support they have conferred upon the Bank. This has enabled the Bank to realize these continued achievements and maintain its preeminent position in the Kuwaiti Banking sector.

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