Ahli United Bank (AUB) reported a net profit attributable to its equity shareholders of $257.2 million for the nine months ended 30 September 2012, a 7% increase over the same period in 2011 (YTD Q3/2011: $240.3 million). The resultant basic earnings per share were US 4.9 cents for the period ended 30 September 2012, (YTD 30 September 2011: US 4.6 cents). Q3/2012 net profit was 11.0% higher at $87.2 million compared to $78.6 million for Q3/2011.
Total operating income grew by 9.3% to $653.9 million over the same period last year, contributed by a 13.0% growth in net interest income, 6.1% improvement in fee based income and a 7.1% increase in share of profit from associates and joint venture. Key drivers of the increase in operating income were the 4.8% net growth in loans and advances and a 15.4% growth in the non-trading investment portfolio over December 2011, funded by a 7.1% increase in customers’ deposits. Prudent cost management contained the cost income ratio at 30% (YTD Q3/2011: 31.6%) and contributed to improving profitability.
The non-performing loan ratio was maintained at 2.5% as at 30 September 2012 (31 December 2011: 2.5%). Overall provision coverage ratio (including collective impairment provisions) increased to 146% at 30 September 2012 as compared to 135% as of 31 December 2011, as part of AUB’s ongoing prudent risk management strategy.
The Group’s Return on Average Equity increased from 13.1% to 13.3% while Return on Average Assets for YTD Q3/2012 continued at 1.3%.