Result reflects a 5.1% growth year on year and an EPS of 23.5 fils

KUWAIT: Ahli United Bank (AUB) reported a net profit amounting to KD 45.2 million for the nine months period ending on 30 September 2019 compared to KD 43.0 million during the same period last year. This reflects a 5.1 percent growth year on year and an earnings per share (EPS) of 23.5 fils as compared with 22.3 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 financing income has grown by 8.7 percent during 2019.

AUB's operating revenue amounted to KD 80.7 million for the nine months ended 30 September 2019. Shareholders equity rose further by 3.9 percent reaching KD 447.5 million as of 30 September 2019 as compared with KD 430.8 million recorded at the end of 2018. Capital Adequacy Ratio of 14.9 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 5.2 percent and 5.4 percent each to reach KD 4,117.8 million and KD 2,950.6 million respectively as at the end of September 2019. Furthermore, customer deposits increased by 8.4 percent and reached to KD 2,627.6 million at the end of September 2019 backed by ideal cost, maturity and concentration management aiming to secure higher margins. Despite the assets growth, the bank continued to maintain the high quality of its assets whereby assets quality metrics remained strong of Non-performing finance (NPF) ratio of 1.27 percent of the total finance books with provision coverage ratio of 251.4 percent excluding collaterals.

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 78 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."

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 in addition to the prestigious awards received by international well-known entities. "These achievements are a strong indicator of the Bank's business strategy and sound performance," he said.

Al-Mudhaf referred to the role of AUB's sustainable social development program which continued to focus on support Kuwait's youth and environment. These efforts continue to deepened Ahli United Bank's positive impact on society. Dr Anwar Al-Mudhaf expressed thanks and appreciation for the Bank's shareholders and customers for their committed support to and deep trust in the Bank. He also expressed appreciation to the Central Bank of Kuwait, and all supervision authorities and lauded the efforts of the Bank's executive management and all its employees that enable the Bank to achieve that success.

Leadership position

AUB's Acting Chief Executive Officer, Tareq Muhmood, 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.

Muhmood expressed his pride that the Bank recently won a number of prestigious awards including the "Best Online Cash Management Bank" in Kuwait 2019 in corporate banking for the third year in succession, by Global Finance, the leading international finance magazine. This award is given to banks that offer advanced local, regional and international banking solutions combined with the latest innovative digital technologies This award reaffirms the appreciation of international institutions for AUB's leading position in the local market. The bank also won "the Best Business IT Innovation - Banking - Kuwait 2019" granted by "the International Finance Magazine (IFM)", a world-class recognized magazine specialized in Banking and Finance based in London, UK. . In addition to previous awards, the bank also won the "The Most Innovative Digital Banking Initiative (Smart Branch) Kuwait 2019" by Global Banking & Finance Review - a leading magazine in publishing the latest global developments in finance and banking-, for the digital branch AUB opened at the Avenues Mall, Phase IV.

Muhmood further added: "We are pleased with our achievements to embrace the most recent technological developments in banking and digital transformation to continue AUB's leadership by taking numerous significant steps in its journey towards digital transformation. We have a number of contributions in the field of digital transformation in the banking sector through a full range of solutions for private, retail and corporate banking, covering all business and activities of the bank, including the only application of its kind in Kuwaiti banks for smartphones and computers for corporate banking (AUB B2B) which includes all corporate-related services and products. The Bank also succeeded to launch the Video Chat Room Service at the Avenues Branch, providing customers a privacy space for video chatting with customer service staff. The Bank also provided several new updates to its outstanding Mobile Banking Application, providing its customers unparalleled exclusive features in terms of convenience, speed, security and the ability to meet and exceed customers' expectations in the digital era."
Muhmood added "With the excellent team at Ahli United Bank, we expect to see more progress over the coming months".