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REG - Ahli United Bank BSC AUB Sukuk Limited - Annual Financial Report

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RNS Number : 0167F  Ahli United Bank B.S.C.  16 March 2022



 Press Release






Ahli United Bank B.S.C. (AUB) reported a net profit attributable to its equity
shareholders of US$ 156.6 million for Q4/2021, which represents a 265%
increase over the Q4/2020 reported net profit of US$ 42.9 million driven by an
increase in net interest income and a lower level of net credit provision
charges. The Basic and Diluted Earnings per Share were US 1.3 cents in Q4/2021
versus US 0.3 cents in Q4/2020. Comprehensive income attributable to the
owners of the bank for Q4/2021 was US$ 147.5 million (Q4/2020: US$ 47.9
million, +208.1%). Net interest income was US$ 227.6 million in Q4/2021
(Q4/2020: US$ 199.4 million, +14.1%).


AUB reported a net profit attributable to its equity shareholders of US$ 607.2
million for the full year 2021, represents a 34.3% increase over the 2020
reported profit of US$ 452.2 million mainly driven by credit growth aided by
effective balance-sheet management and the reduction in credit provision
charges supported by overall economic improvement.  The Basic and Diluted
Earnings per Share in 2021 increased to US 5.6 cents as compared to US 4.1
cents in 2020. Comprehensive income attributable to the owners of the bank for
the year 2021 was US$ 641.2 million (2020: US$ 334.9 million, +91.5%). Net
interest income for 2021 was US$ 871.8 million (2020: US$ 799.4 million,
+9.1%) achieved through prudent asset growth and reduction in funding costs
given lower liquidity premia.



The Group's equity attributable to owners as at 31 December 2021 increased by
11.7% to US$ 4.5 billion (31 December 2020: US$ 4.0 billion). Return on
Average Equity for 2021 increased to 13.8% (2020: 10.4%).  The AUB Group's
total assets as at 31 December 2021 increased by 4.6% to US$ 41.9 billion (31
December 2020: US$ 40.1 billion) reflecting balanced balance sheet growth
supported by prevailing economic recovery in its main operating markets.
Return on Average Assets also improved to 1.6% for 2021 (2020: 1.2%).


The non-performing loans ratio was lower at 2.4% (31 December 2020: 2.6%) with
very solid specific provision coverage of 83.1% (31 December 2020: 85.9%).
Provision coverage levels are calculated on a cash provision basis excluding
the value of the substantial additional non-cash (real estate and securities)
collaterals assigned against non-performing loans.


The cost to income ratio for 2021 was 29.5% (2020: 29.3%) reflecting AUB's
focussed efforts to enhance operational efficiencies through the progressive
roll-out of digitization initiatives as part of AUB Group's overall
transformation plan currently under implementation.


The Board of Directors has recommended a distribution comprising of a cash
dividend of US cents 3.0 per share (2020: US cents 1.25 per share) together
with a bonus ordinary share issue of 10% (2020: 5%), subject to AUB Annual
General Assembly approval.



The AUB Chairman, Mr. Meshal Al Othman, commented "Against a challenging
background of continuing pandemic concerns, emerging supply chain disruptions
and market volatility driven by inflationary pressures, AUB achieved excellent
operational and financial results in 2021 proving again the solidity and
resilience of its multimarket business model'.


He added "During 2021, AUB Group successfully concluded a perpetual Tier-1
Sukuk-2021 Issue for US$ 600 million through its Kuwait subsidiary following
the recall and full redemption of its earlier US$ 200 million perpetual Tier-1
Sukuk-2016 Issue, and a US$ 600 million long term senior Sukuk issuance at the
parent bank with both deals significantly oversubscribed by a wide range of
prime regional and international investors demonstrating AUB's credentials as
a leading market player. Going forward, AUB will continue to prudently
navigate the challenging and unprecedented times by providing a safe operating
environment for all staff, clients and counterparties, by expanding and
updating its seamless remote capabilities to transact business and support all
our client needs as well as by protecting and developing its core earnings
capacity through organic and inorganic measures".


About Ahli United Bank (AUB)


Ahli United Bank B.S.C (AUB) is a leading pan-regional financial services
provider, incorporated in Bahrain in May 2000.  It offers a full range of
retail, commercial and private banking & wealth management services, both
conventional and Sharia-compliant (42% of the total assets are
Sharia-compliant at 31 December 2021), across the MENA region and the UK. AUB
operates through its Bahrain Head Office and its subsidiaries in Kuwait,
Egypt, Iraq, and the UK as well as its associates in Oman and Libya; and a
branch in the UAE (DIFC).


The key shareholders of AUB are the Public Institution for Social Security,
Kuwait (18.86% stake) and Social Insurance Organization, Bahrain (10.01%


AUB's strong performance has earned it a string of prestigious local and
regional accolades over the years, including: "Best Bank in the Middle East"
by The Banker (2006, 2016) and by Euromoney (2007, 2012) besides its
consistent selection as the "Best Bank in Bahrain" over the years.



The press release and full set of the consolidated financial statements for
the year ended 31 December 2021 are available on the Bahrain Bourse, Boursa

and AUB websites.

www.ahliunited.com (http://www.ahliunited.com)


Trading Code Bahrain Bourse and Kuwait Boursa: AUB



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