Ahli United Bank (AlMutahed) Financial Results 2019

AUB announced results of its operations for the year ending in December 31st 2019, which indicate that the bank achieved profits (after deducting taxes) by KD 55 million, a rise by KD 3.8 million or by 7.3% versus KD 51.2 million in 2018. This rise is attributed to the decrease in total provisions by a greater value than the decrease in the operating profit. The following graph displays the profits level attributed to the bank’s shareholders during the period 2008-2019.

In details, the bank’s total operating income decreased by KD 14.4 million or by 11.8%, reaching KD 107.2 million compared with KD 121.6 million. This resulted from the drop in item of net financing income by KD 15.3 million, to reach KD 85.1 million compared with KD 100.4 million. While item of net gain from investment securities rose by KD 2.3 million, to KD 6.8 million versus KD 4.5 million in 2018.

On the other hand, the bank’s total operating expenses rose by KD 2.8 million or by 7.4%, reaching KD 40 million versus KD 37.2 million in the end of 2018. As a result of the increase in item of depreciation by KD 2.5 million. Percentage of total operating expenses to total operating income scored 37.3% compared with 30.6% in 2018. Total provisions decreased by KD 21.1 million or by 69.1%, reaching KD 9.4 million versus KD 30.5 million. Accordingly, the net profit margin for the bank shareholders rose to 51.3% compared with 42.2% in the end of 2018.

Total bank assets scored KD 4.351 billion, increasing by KD 437.8 million or by 11.2%, versus KD 3.914 billion in the end of 2018. Item of financing receivables increased by KD 218.8 million, reaching KD 3.019 billion (69.4% of total assets) versus KD 2.800 billion (71.5% of total assets) in the end of 2018. Percentage of financing receivables to total depositors scored 80.6% compared with 83.8%. Moreover, item of deposits with other banks rose by KD 119.6 million and scored KD 454.4 million (10.4% of total assets), versus KD 334.8 million (8.6% of total assets). 

Figures indicate that the bank’s liabilities (excluding total equity) increased by KD 413 million or by 12.1%, and scored KD 3.835 billion compared with KD 3.422 billion in the end of 2018. Percentage of total liabilities to total assets scored 88.1% versus 87.4% in 2018. 

Results of analyzing the bank’s financial statements indicate that profitability ratios showed mixed performances compared with the end of 2018. Return on assets (ROA) declined slightly to 1.33% versus 1.35%. While return on capital (ROC) rose to 27.3% compared with 26.7% in 2018. Return on equities (ROE) increased to 12.4% versus 12.2% in 2018.  Likewise, earnings per share (EPS) rose to 27.8 Fils versus 25.8 Fils in 2018. (P/E) scored 12.3 times compared with 11.5 times in 2018, due to the rise in EPS by 7.8% against a greater rise in the share market price by 15.2%. (P/B) scored 1.4 times compared with 1.2 times in the end of 2018.

The bank announced that it would distribute cash dividends by 15% of the nominal share value, i.e. 15 Fils per share, and distribute 5% as bonus shares. This means the share achieved cash yield by 4.4% on the closing price in the end of December 2019 in the amount of 342 Fils. In 2018, cash distributions were 15% and bonus shares were at 5% which means that the bank obtained the same level of distributions.