Apr 24 2012
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Ahli United Bank reports a 6.6% rise in Q1 profit to us$ 82.4 million
Ahli United Bank B.S.C. (AUB) reported a net profit attributable to its equity shareholders of US$ 82.4 million for the quarter ended 31 March 2012, a 6.6% increase over the same period in 2011 ( Q1/2011: US$ 77.3 million). The resultant Earnings per Share were US 1.6 cents, compared to US 1.5 cents achieved in Q1/2011. The result also represents a 17.2% improvement over the Q/4-2011 trailing quarter reported profit of US$70.3 million.
The key driver to these results was the increase in the operating income of the Bank from US$ 191.2 million to US$ 210.5 million (+ 10.1%), underpinned by the rise in net interest income by 10.3% to US$ 150.8 million (Q1/2011: US$ 136.7 million) and a 8.8% increase in fee income driven by growth in core banking transactions. With incremental revenues and continuing prudent cost management, the cost income ratio further improved to 30.1% (Q1/2011 - 32.2%).
Given the uncertain prevailing economic environment, AUB continued its prudent provisioning policy resulting in the overall provision charge for Q1/2012 increasing to US$46.1 million compared to US$ 35.9 million in Q1/2011. The Group's asset quality improved with the non-performing loan ratio dropping to 2.3% as at 31 March 2012 (31 December 2011: 2.5%). The overall provision coverage ratio (including collective impairment provisions) increased to 144% as compared to 135% as of 31 December 2011.
The Group's Return on Average Equity for Q1/2012 stood at 12.8%, compared to 12.9% achieved in the first quarter of 2011. Return on Average Assets was maintained at 1.3% for Q1/2012 (Q1/2011: 1.3%).
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