During Q3/2011, net profit attained was 20.6% higher, on a quarterly comparable basis, at $ 78.6 million (YTD Q3/2010: $ 65.2 million). The Group’s net operating income rose by 15.2% to $ 481.3 million over the same period last year, reflecting the Group’s resilience in operating in the current difficult regional and international environment. The resultant basic earnings per share was $ 4.8 cents for the period ended 30 September 2011 (YTD 30 September 2010: $ 4.1 cents).
Net interest income for YTD Q3/2011 increased by 12.3% to $ 415.7 million (YTD Q3/2010: $ 370.2 million). Fee income slightly increased to $ 91.2 million, a 1.7% increase on an YTD basis. Judicious cost control measures together with the intelligent spend culture adopted by the Bank resulted in the cost income ratio improving to 31.6% (YTD Q3/2010: 32.7%), despite an unfavourable currency translation effect.
Prudent risk management and monitoring of the risk asset portfolio sustained its asset quality with the non performing loans ratio contained at 2.5% as at 30 September 2011 (31 December 2010: 2.4%). Provision charge during the current period declined by 15% to $117.1 million. The overall provision coverage ratio (including collective impairment provisions) increased to 137% as compared to 119% as of 31 December 2010.
Return on Average Equity for the nine-month period ended Q3/2011 of 13.1%, significantly improved over the 12.1% level achieved in the same period in 2010. Return on Average Assets also improved to 1.3% (YTD Q3/2010: 1.2%).
Asset growth was prudently managed at $27.2 billion at 30 September 2011 up by 2.8% from $26.5 billion at 31 December 2010 which mainly resulted from a 3.6% increase in loans and advances to $15 billion. Customers’ Deposits increased by 12.4% (+$1.8 billion) to reach $16.7 billion which enabled AUB to reduce its dependence on wholesale funding by $1.4 billion during the year.
“AUB continued its solid performance into the third quarter of 2011 against the backdrop of a very difficult regional and international operating environment. The sustained growth in net operating income and net profit attained demonstrates AUB’s resilience and the effectiveness of its business model based on geographic and product diversification within a prudent risk framework” said Fahad Al-Rajaan, Chairman, AUB.