ShareProfit reflects a 7.5% growth y/y and an EPS of 23.4 fils
Dr Anwar Al-MudhafKUWAIT: Ahli United Bank (AUB) reported a net profit amounting to KD 43.0 million for the nine months period ending on 30 September 2018 compared to KD 40.0 million during the same period last year. This reflects a 7.5 percent growth year on year and an earnings per share (EPS) of 23.4 fils as compared with 21.7 fils EPS for the same period last year.
The Bank’s increase in net profits is derived from its continued growth in core revenues whereby its net return on financing has grown by 6.4 percent during 2018.
AUB’s operating revenue reached KD 92.3 million for the nine months to 30 September 2018, reflecting a 9.2 percent net increase as compared with KD 84.5 million achieved in the same period last year. Furthermore, the net operating income grew by 13.7 percent to reach KD 65.0 million for the same period in 2018 compared with KD 57.2 million reported for the period last year. Shareholders equity rose further by 5 percent reaching KD 427.2 million as of 30 September 2018 as compared with KD 406.9 million recorded at the end of 2017. A sound Capital Adequacy Ratio of 15.52 percent remained resilient with a comfortable cushion above the regulatory requirement of 13 percent.
The Bank has achieved satisfactory returns on both equity and assets of 13.9 percent and 1.5 percent respectively during the period, being amongst the highest Key Performance Indicators in the local market. Total assets and financing receivables grew by 7 percent each to reach KD 3,923 million and KD 2,859 million respectively as at the end of September 2018. Furthermore, customer deposits reached KD 2,436 million at the end of September 2018 backed by ideal cost, maturity and concentration management aiming to secure higher margins.
Commenting on these results, the Chairman of Ahli United Bank, Dr Anwar Ali Al-Mudhaf, said that the positive indicators that accompanied the Bank’s performance during the third quarter of the year are the result of the continuous efforts made by all business sectors in the Bank to maintain a remarkable performance that enhances the Bank’s reputation and solidifies its position within the Kuwaiti banking sector as the first bank operating in Kuwait, now for 77 years. “It also reflects our successful business strategy and plans to diversify sources of income, maximize shareholder returns, and go far in achieving customer aspirations with an early response to their increasing needs, he said.
Dr Al-Mudhaf further reiterated the positive market outlook with an increase in the Government’s capital spending and its expected reflection across the local economic and financial environment, which will provide more opportunities for the growth of credit portfolios for banks locally. He confirmed that Ahli United Bank, with its accumulated experience and continuous success since its inception, is one of the most keen banks to support the national development plan projects which will contribute to economic growth within the new vision of Kuwait 2035.
Dr Al-Mudhaf pointed to the advanced capabilities enjoyed by AUB and its commitment to the highest professional standards that are most appreciated by global ratings agencies and place the Bank at the forefront of banking and financial service providers in the State of Kuwait, which enables the Bank to continue to receive these superior ratings from agencies such as Fitch, Moody’s and Capital Intelligence.
The Bank maintained a credit rating of “A+” on the long term and “F1” on the short term with stable outlook by Fitch Ratings Agency, and “A2” on the local currency with stable outlook by Moody’s. Capital Intelligence affirmed the Bank’s long term credit rating of foreign currency to “A+” and enhanced the short term foreign currency rating to “A2”. All these ratings confirm the credit standing, capital quality, and stability of the Bank for future growth.
Dr Al-Mudhaf expressed his pride that the Bank recently won the ‘Best Governance Bank in Kuwait 2018’ award from Capital Finance International Magazine. This award reaffirms the appreciation of international institutions for AUB’s leading position in the local market.
AUB’s Chief Executive Officer Richard Groves emphasized that “The Bank has maintained its leadership position in Kuwait, due to the joint efforts of management, and all staff, noting that the financial results reflected the strong financial position of the Bank.
On the same subject, Groves praised the Bank’s plan to embrace the most recent technological developments in banking and digital transformation to continue AUB’s leadership by taking numerous significant steps in that direction. He further added: “We have recently collaborated with Kuwait Airways Corporation to launch a new POS service on-board for the first time in Kuwait and exclusively on KAC planes. This service represents a new development in the use of POS terminals which will allow passengers to use this service while on board. We have also launched a new partnership with Ajar Online Services to promote the growth of real estate rental payments through digital channels which provides an improved and efficient service for both tenants and property owners. In cooperation with Automated Services Network Company (eNet), the Bank also has successfully launched the service of bill payments of all major telecommunications companies in Kuwait, through the Bank’s online banking service and mobile banking application.
Groves also lauded the tangible improvements witnessed by the Bank’s Retail Banking Services that reflects the Bank’s desire to meet the needs of its customers in a manner that suits their expectations. The Bank has recently launched the “Go” Youth package for students, which is an innovative package offering a range of banking services with numerous unique benefits designed to meet their needs allowing them the opportunity to win and save without being restricted to a minimum amount for opening the account. The Bank has launched the Afaq Saving Account for investment in Kuwaiti Dinar for individuals, which is an added value to the Bank’s customers who look forward to saving while achieving returns on their deposits. Ahli United Bank has also launched, for the first time, a product for financing the costs of medical treatment services in cooperation with Al-Seef Hospital which includes numerous credit benefits through flexible monthly installments.
During the course of the current year, AUB won a number of prominent awards including ‘Most Innovative Strategic Domestic Treasury in Kuwait 2018’ award from International Finance Magazine (IFM), one of the region’s top tier publications focusing on financial services across the Middle East. The award reflects the Bank’s overall vision in adopting the most innovative practices across the banking sector in Kuwait.
Finally, in concluding his statement, Dr Al-Mudhaf extended his thanks and appreciation to the Central Bank of Kuwait, the Bank’s Board of Directors, customers, shareholders, management and staff for the confidence and support they have conferred upon the Bank. This has enabled the Bank to realize these continued achievements and maintain its preeminent position in the Kuwaiti banking sector.
