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Ahli United Bank 2011 profits grow by 15% - 15% cash dividend, 5% as bonus shares announced

KUWAIT: Ahli United Bank announced its financial results for the year 2011 where it was able to achieve net profit amounting to KD 31.5 million compared to KD 27.4 million for the previous year 2010 recording a remarkable growth of 15% in net profit, resulted in higher earnings per share reaching 31.1 fils compared to 27.0 fils for previous year.

As for dividends distribution, the Board of Directors of the Ahli United Bank decided to recommend to the General Assembly cash dividend distribution of 15% of the share par value (15 fils per share) and 5% bonus shares (5 shares for each 100 shares) to the shareholders registered at the convention date of holding the General Assembly subject to its approval and the consent of the concerned authorities.

On this occasion, the Chairman and Managing Director of Ahli United Bank ; Hamad Abdul Mohsen Al-Marzouq; mentioned in a press statement, " with the grace of Allah, Ahli United Bank has achieved a remarkable growth in all the financial indicators as the Bank has recorded a growth of 7.1 % in total assets reaching KD 2628 million in the year 2011 as compared to KD 2454 million in year 2010. The customers' deposits grew by 30.4 % and reached KD 1679 million in the year 2011 compared to KD 1288 million in year 2010. Shareholder's equity has increased by 6.7%, and the Bank has achieved returns on average equity and average total assets equal to 12.7% and 1.3% respectively.

Al-Marzouq added that the profits of Ahli United Bank for the year 2011 have been achieved from operating profits through the core Bank's activities amounting to KD 77.6 million stating that all operational activities and indicators of the Bank have witnessed outstanding growth during the year 2011. The positive results were achieved despite the initiative of the Bank's management to retain additional precautionary, voluntary and general provisions other than the provisions allocated in accordance with the instructions of the Central Bank of Kuwait and the International Accounting Standards to face the consequences of the global financial crisis.

It is worth to mention that the Bank's non-performing debt coverage percentage has exceeded 149% and increased to 196% when collaterals are taken into consideration. Both percentages exceed by far the coverage percentage for local and regional banks.

Al-Marzouq pointed out that the continuous improvement in Ahli United Bank 's financial indicators confirms the success of the Bank's conversion of its operation in compliance with the principles of Islamic Sharia'a where the Bank was able to strengthen its name as one of the leading Islamic banks in Kuwait. Thus, conversion decision to become a fully fledged Islamic bank at the beginning of April 2010 was not a random decision, but on the contrary, it was based on a solid and planned strategy prepared by the Bank's executive management and Board of Directors over the years.

Al-Marzouq added that the outstanding results would not have been possible without the efforts and dedication of its human resources and its continued determination to overcome the difficulties surrounded by the Kuwait economy; especially in 2011 where political developments in the region have been witnessed its impact on the different economies in general and Kuwait economy in particular.

Al-Marzouq confirmed that continued growth of the Bank's results reflect its strong financial position, the high quality of its assets and ability to overcome the challenges which lead Moody's international rating agency to enhance the Bank's classification to Stable.

© Kuwait Times 2012