Ahli United Bank Financial Results – First Half 2019

Ahli United Bank (AUB) announced results of its operations for the first half of the current year which indicate the bank achieved net profits (after tax deduction) by about KD 30.76 million, a rise by KD 1.80 million or by 6.2% versus KD 28.96 million net profits in the same period of 2018. This resulted from the absolute decline of total provisions by a higher value than the decline of the operating profit, in which total provisions declined by KD 10.91 million against a lower decline in the operating profit by KD 9.04 million compared to the same period of 2018. Therefore, showing an immediate impact on the bank’s net profit.

In details, the bank’s total operating income decreased by KD 7.19 million or by 11.3%, reaching KD 56.68 million compared with KD 63.87 million. This resulted from the drop in the item of net financing income by KD 7.20 million to KD 43.68 million versus KD 50.88 million. Likewise, item of share of results from associates achieved losses by KD 247 thousand, compared to gains by KD 770 thousand in the same period of last year, i.e. declined by KD 1.02 million. While item net gain on sale of investment properties rose by KD 1.12 million.

On the other hand, total operating expenses of the bank by KD 1.85 million or by 10.3%, and reached KD 19.70 million compared with KD 17.85 million in the first half of 2018. This resulted from the rise of items staff costs and depreciation by KD 1.93 million, while item of other operating expenses decreased by KD 85 thousand. Total provisions decreased by KD 10.91 million or by 69.4% as mentioned previously, reaching KD 4.81 million versus KD 15.72 million. The net profit margin rose to 54.3% of total operating income compared to 45.3% in the same period of 2018, as a result of the decreased provisions’ impact on the bank’s net profit.

Total assets scored KD 4.017 billion, a rise by 2.6% or by KD 103.1 million versus KD 3.914 billion in the end of 2018. They increased by 8.7% or by KD 320.8 million when compared with total assets in the end of the first half of 2018 when they scored KD 3.696 billion. Item of financing receivables rose by KD 105.1 million or by 3.8%, reaching KD 2.905 billion (72.3% of total assets) versus KD 2.800 billion (71.5% of total assets) in the end of 2018. It also increased by KD 160.4 million or by 5.8%, if compared with the same period of 2018 when it scored KD 2.745 billion (74.3% of total assets). Ratio of total financing receivables to total deposits scored about 84.4% compared to 87.2%. Item of cash & balances with banks increased by KD 47 million or by 61.1%, to KD 124 million (3.1% of total assets) versus KD 76.9 million (2% of total assets) at the end of 2018. When it is compared to the same period of last year, it increased by KD 55.5 million or by 81.2%, rising from KD 68.4 million (1.9% of total assets).

Figures indicate that the bank’s liabilities (excluding total equity) increased by KD 101.7 million or by 3%, and scored KD 3.524 billion compared with KD 3.422 billion in the end of 2018. It increased by KD 301.8 million or by 9.4%, if compared with their total in the first half of last year. Ratio of total liabilities to total assets scored 87.7% versus 87.2%. 

Results of analyzing the bank’s financial statements on annual basis indicate that most profitability ratios increased compared with the same period of 2018. Return on average capital (ROC) rose to 30.6% versus 30.2%. Likewise, return on average equities (ROE) increased to 14.3% versus 14.1%. While return on average assets (ROA) declined slightly to 1.55% versus 1.57%. Earnings per share (EPS) rose up to 15.7 Fils compared with 14.7 Fils. (P/E) scored 10.1 times compared with 9.7 times, due to rise in the share market price by 10.9% against a lower rise in the earnings per share (EPS) by 6.8% compared with their level on June 30th 2018. (P/B) scored 1.3 times compared with 1.2 times.