Ahli United Bank (AUB) Financial Results – 30 September 2019

Ahli United Bank (AUB) announced results of its operations for the first nine months of the current year, which indicate the bank achieved net profit (after tax deductions) by KD 45.24 million, an increase by KD 2.21 million or by 5.1% compared with KD 43.03  million in the same period of 2018. This resulted from decrease in total provisions by KD 16.27 million or by 81.3%. This rise in the net profit occurred despite the decline in total operating income and the increase in the operating expenses. Therefore, the bank’s operating profit decreased by KD 13.96 million or by 21.5%, and reached KD 51.08 million versus KD 65.04 million.

In details, the bank’s total operating income decreased by KD 11.64 million or by 12.6%, and scored KD 80.67 million compared with KD 92.31 million. This resulted from the decline in the item of net financing income by KD 12.17 million, reaching KD 64.33 million versus KD 76.50 million. While item of net gain on sale of investment properties rose by KD 1.12 million, and scored KD 1.29 million compared with KD 174 thousand.

On the other hand, total operating expenses of the bank increased by KD 2.32 million or by 8.5%, and scored KD 29.58 million compared with KD 27.26 million in same period of 2018. This resulted from the rise in the item of staff costs and depreciation by a total of KD 2.71 million, while item of other operating expenses decreased by KD 390 thousand. Total provisions decreased by KD 16.27 million or by 81.3% as mentioned previously, and scored KD 3.75 million compared with KD 20.02 million. Therefore, the bank’s profit margin increased to 56.1% out of total operating income, compared with 46.6% in same period of 2018.Total bank’s assets scored KD 4.118 billion a rise by 5.2% or by KD 204.1 million, versus KD 3.914 billion in the end of 2018. It also rose by 5% or by KD 194.3 million if compared with total assets in the same period of 2018, when it scored KD 3.923 billion. Item of financing receivables rose by KD 150.6 million or by 5.4%, reaching KD 2.951 billion (71.7% of total assets) compared with KD 2.800 billion (71.5% of total assets) in the end of December 2018. It also rose by KD 91.7 million or by 3.2%, if compared with the same period of 2018 when it scored KD 2.859 billion (72.9% of total assets). Percentage of financing receivables to total deposits scored 83.8% compared to 85.3%. Item of deposits with other banks rose by KD 105.4 million or by 31.5% and scored KD 440.2 million (10.7% of total assets), versus KD 334.8 million (8.6% of total assets) in the end of last year. When compared with the same period of last year, it also rose by KD 159.2 million or by 56.6% when it scored KD 281.1 million (7.2% of total assets).

Figures indicate that the bank’s liabilities (excluding total equity) increased by KD 187.4 million or by 5.5%, reaching KD 3.610 billion compared with KD 3.422 billion in the end of 2018. It also rose by KD 174 million or by 5.1%, compared with the total in the same period of last year, when total liabilities scored KD 3.436 billion. Percentage of total liabilities to total assets scored 87.7% compared with 87.6%.

Results of analyzing the bank’s financial statements on annual basis indicate that profitability ratios showed mixed performances compared with the same period of 2018. Return on average assets (ROA) decreased slightly to 1.50% compared with 1.51%. Likewise, the return on average equities relevant to bank’s shareholders (ROE) decreased slightly to 13.7% versus 13.8%. Meanwhile, the return on average capital (ROC) rose slightly to 30% versus 29.9%. Earnings per share (EPS) increased to 23.5 Fils compared with 22.3 Fils. (P/E) scored 10 times versus 9.8 times, due to the rise of the market share price by 7.6%, against a lower rise in the EPS by 5.4% compared with their levels on 30 September 2018. (P/B) scored 1.3 times versus 1.2 times.