S&P issues 'A-' stable long term credit rating to Ahli United Bank

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In its rating report, S&P said that “the ratings on Bahrain-based Ahli United Bank B.S.C. (AUBAUB) reflect its leading commercial position in the Kingdom of Bahrain, better geographic diversification than for regional peers, improving financial performance, and strong asset quality”.

S&P went on to state: “AUBAUB is among the 20 largest banking groups in the Gulf. It is also one of the very few players to have good geographic diversification, although this creates additional challenges for risk management and operating efficiency. The group's adequate enterprise risk management--in our assessment--and proven ability to integrate acquisitions nevertheless positions it well to handle these challenges”.

AUBAUB

AUBAUB

AUBAUB

Fahad Al-Rajaan, Chairman, AUBAUB, commented on the S&P rating report, “Both the timing and the conclusions of this rating report by S&P are significant, as it affirms AUBAUB’s healthy standing amidst the current market turbulence, and recognises our strong fundamentals in a number of areas. This report as well as the overwhelming market response to our recent US$ 800 million Syndicated Loan Facility, are two yardsticks to the confidence reposed by international markets in AUBAUB’s position vis-à-vis its core strengths, growth areas and key markets.”

AUBAUB

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About Ahli United Bank
Ahli United Bank B.S.C. is an offshore and full commercial banking institution based in Bahrain providing retail, commercial and investment banking business, global fund management and private banking services. It is geared towards growth through the development of a larger client base in the Gulf states and through its close partnerships with customers staff and product providers. The evolution of future mergers and acquisitions in the Gulf region remains central to the Bank’s expansion strategy. AUBAUB reported a consolidated net profit of US$ 94.3 million for the three months period ended 31 March 2008, an increase of 37% compared to the same period last year. As of 31 March 2008, total assets for AUBAUB stood at US$ 25.1 billion (31 Dec 2007 – US$ 23.0 billion)

AUBAUB has an effective holding of 75% share in the Bank of Kuwait and the Middle East (BKME). BKME has a 10% market share in Kuwait. BKME achieved a net profit of KD 48.2 million for the year ended 31 December 2007, an increase of 6.9% compared to the last year.

AUBAUB also has a 40 percent share in Ahli Bank Q.S.C. a commercial bank in Qatar with an enhanced capital base following the 100 percent participation by AUBAUB in its capital increase. Ahli Bank Q.S.C. achieved a 49.7% percent higher net profit of QR 302.7 million for the year ended 31 December 2007 compared to the last year. AUBAUB has a 10-year management contract with Ahli Bank Q.S.C.

In 2005, Ahli United Bank acquired a 49% share in the Commercial Bank of Iraq, a private commercial banking institution established in Iraq in 1992. Since its inception, Commercial Bank of Iraq has performed consistently well in different business segments and its total assets as at 31 December 2006 stood at IQD 165 billion ( 31 December 2005: IQD 156 billion).

In December 2007, AUBAUB has acquired a 35% stake in Ahli Bank S.A.O.G. (ABO), [formerly Alliance Housing Bank S.A.O.G.], a bank specializing in residential mortgage lending through its seven branches in the Sultanate of Oman. The Bank has signed a five year renewable technical services and management agreement to provide technical and management services to ABO. Following the receipt of Central Bank of Oman’s approval to convert its operations from a specialized mortgage finance provider into a full fledged commercial bank and receipt of a commercial banking license effective 27 December 2007, ABO is extending corporate, retail, treasury and private banking services to its customers.

In 2008, AUBAUB has been awarded “Best Bank in the Middle East 2008” and “Best Foreign Exchange Bank in Middle East – 2008” by Global Finance. During 2007, AUBAUB was named: “Best Bank in the Middle East – 2007” by Euromoney and Global Finance and “Bank of the Year 2007 – Bahrain” by The Banker. In 2006, AUBAUB was awarded: “Bank of the Year 2006 – Middle East” (by The Banker), “Best Bank 2006 – Middle East and Africa” (by Global Finance); “Best Foreign Exchange Bank – Middle East 2006” (Global Finance); “Best Bank and Bank of the Year 2006 – Bahrain” (Global Finance, Euromoney and The Banker).

AUBAUB’s ordinary shares are listed on Bahrain Stock Exchange (BSE) (since August 2000) and Kuwait Stock Exchange (KSE) (since 26 June 2006) and are actively traded. AUBAUB’s Class A preference shares are also listed at the BSE since 20 March 2005.

S&P have accorded AUBAUB with a long term rating of A- with a stable outlook in November 2007. AUBAUB foreign currency long term rating has been upgraded to A with a stable outlook and short-term rating of A2 by Capital Intelligence in June 2007. Fitch Ratings has reaffirmed its long-term rating of A- with a stable outlook for AUBAUB in August 2007.

For further information, please contact:
Maya Ribeiro,
Action Bahrain
TEL: +973 17234553
Email: maya.r@actionprgroup.com

© Press Release 2008