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Ahli United Bank Reports KD 11.1Million Net Profits for the First Quarter of 2021

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Press Release
28 April 2021

Ahli United Bank Reports KD 11.1Million Net Profits for the First Quarter of 2021

Ahli United Bank K.S.C.P announced its results for the first three months of this year ended March 31, 2021, achieving a net profit of KD 11.1 Million compared to KD 15.3 Million of net profits recorded for the same period last year, with a decline of 27.5% due to higher provisions in 1Q2021 and a non-recurring capital gains on securities booked during 1Q2020.

The Bank also recorded total operating income of KD 24.6 Million in 1Q2021 (KD 29.1 Million in 1Q2020). Shareholders’ equity increased by 2.5% to reach KD 453.7 Million at the end of March 2021, higher than KD 442.6 Million recorded as on 31 December 2020. In addition, AUB maintained good capital adequacy ratios of 15.7% as of March 31, 2021 which is comfortably higher than the CBK current minimum required ratio, which enhances the opportunities for future expansions in credit facilities and operations.

As of March 31, 2021, the Bank’s return on average equity (ROAE) recorded 9.9% and return on average assets (ROAA) recorded 1 %. Earnings per share recorded 5.7fils per share in 1Q2021 (7.9fils in 1Q2020).
Commenting on the results for the first quarter of 2021, Dr. Anwar Al-Mudhaf, Chairman of Ahli United Bank said, we are continuing the journey of the challenge against repercussions of Covid-19 pandemic with an optimistic outlook, relying on a well-thought-out action plan to manage this crisis and our full readiness to deal with any possible changes in light of the ongoing impacts of the pandemic worldwide and to return to impose some lockdown measures.

He added, AUB managed to end the first quarter of the fiscal year 2021 with a solid balance sheet and was able to maintain the higher quality of our assets during this critical times. This is attributed to our resilient business strategy, the sound financial footing and the prudent strategy on which we are relying. Undoubtedly, the exceptional efforts that we see from various state institutions to vaccinate against Covid-19 boost our optimism and hope for the approaching return of economic activities to operate at full capacity and the return of normal life. However, I would like to mention that our keenness to set aside more hedging provisions to support the Bank's financial position and to continue adopting a conservative approach in risk management is not conflicting with our optimistic outlook but adds a realistic basis of work and perseverance.
Dr. Al-Mudhaf emphasized the AUB’s commitment to implementing solid rules of governance and its continued efforts in supporting various segments of society under these circumstances through its ambitious CSR program.
Dr. Al-Mudhaf expressed his thanks and appreciation to the Bank’s shareholders for their support and backing to the Bank under these exceptional circumstances, and also extended appreciation to the Bank’s customers for their lasting loyalty, trust and interaction with the new services provided by the bank that are more convenient to life variables, especially digital banking services with their capabilities and resilience in meeting their needs and aspirations.
Dr. Al-Mudhaf also expressed sincere gratitude to the Central Bank of Kuwait, and all regulatory, health and security authorities for their efforts in facing Covid-19 pandemic and dealing with its repercussions.
Dr. Al-Mudhaf expressed his thanks and appreciation to the Bank's staff for their sincere efforts, stressing that AUB is greatly proud of its human wealth which is the main pillar for the Bank’s continued success and progress.

Commenting on the Bank’s financial performance in the first quarter, Mrs. Jehad Al-Humaidhi, Acting Chief Executive Officer of Ahli United Bank said, “We have ended the first quarter of 2021 at a growth in all business lines while tightening control over operating expenses, and at the same time we use caution due to the continuing challenges posed by the current situation on the back of Covid-19 pandemic, so we have taken the necessary steps, including strengthening the provisions, and with all these factors, the bank managed to achieve a net profit of KD 11.1 Million.

Al-Humaidhi pointed out that AUB focuses its efforts to accelerate the digital transformation process, being an irreplaceable strategic option, not only to ensure the continuing provision of the best services to the Bank’s customers under the pandemic situation, the requirements of social distancing and the necessity of providing services to customers by using technological and digital means, but also because it is the future of banking services the world is heading to in light of the digital banking revolution, with its unmatched added value for customers in resilience, convenience, and saving time and effort. At the same time, AUB is continuing to develop its branches and equip them with the best amenities to receive customers with a commitment to apply the necessary precautionary measures to protect both employees and customers.
Al-Humaidhi concluded by extending thanks and appreciation to the Management and the employees of the Bank for their dedication and cooperation which has assisted in overcoming the implication of this pandemic

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