DOHA: Ahli United Bank (AUB) reported a record net profit attributable to its equity shareholders of $482.5m for the year 2014, a growth of 31.7 percent compared with the net profit of $366.5m in 2013. The net profit in Q4/2014 was $106.2m as compared to $77.2m in Q4/2013.
AUB’s total operating income crossed $1bn for the first time since its inception in 2000 with an increase of 8.7 percent over the $958m achieved in 2013. This surge in operating income was driven largely by a 7 percent rise in net interest income (NII) to $763.3m. Fees and other income increased by 13.4 percent from $245.1m to $278m. The higher operating income and disciplined cost culture aligned to business needs across the AUB Group further improved the operating cost income ratio to 29.7 percent.
The Group’s total assets grew by 2.4 percent to reach $33.4bn at December 31, 2014 from $32.7bn as at 2013 year-end. The growth in total assets was primarily due to a 6.7 percent growth in the loans and advances portfolio to $18.5bn. This balanced credit growth was underpinned by a 4.4 percent growth in customer deposits to reach $23bn.
Asset quality of the Group improved with the non-performing loan ratio reducing to 2 percent as at December 31, 2014 with a specific provision coverage ratio of 83.8 percent. The total provision coverage ratio, inclusive of collective impairment provisions, was 159.4 percent as at December 31, 2014. Core operating return on Average Equity for 2014 increased to 15.2 percent and the core operating return on Average Assets for 2014 increased to 1.6 percent, adjusted for exceptional non-recurring items.
The resultant basic earnings per share were US cents 8.0 for the year ended December 31, 2014. Given the excellent results achieved, the Board of Directors has recommended a cash dividend of US cents 4.5 per share together with a bonus ordinary share issue of 5 percent.
“AUB’s diversified business model combined with its growing cross border business flows and prudent deployment of liquidity have resulted in the total operating income surging past the $1bn mark. The increase in the operating net profit bears testament to AUB’s strong underlying business fundamentals and to its effective control framework and resilient business model,” said Mohammad Jassim Al Marzooq, Acting Chairman, AUB.
The Peninsula
