Press Release
AHLI UNITED BANK B.S.C. (c)
REPORTS A NET PROFIT OF
US$ 667.3 MILLION
ATTRIBUTABLE TO OWNER OF THE BANK FOR THE YEAR ENDED 31 DECEMBER
2023
Release Date: 27 February
2024
Ahli United Bank B.S.C. (c) (AUB)
reported a net profit attributable to its equity shareholders of
US$ 667.3 million for the full year 2023 that represents a 22.2%
increase over the 2022 reported profit of US$ 546.1
million.
In view of the amalgamation between
AUBK and KFH that was completed on 22 February 2024, in accordance
with IFRS 5, in AUB's 2023 financial statements (FS), AUBK has been
classified as "Held for Sale". Consequently, as required under this
standard, AUB's 2023 reported balance sheet is not consolidated on
a line-by-line basis and instead AUBK's total assets and
liabilities are disclosed in one line under assets and liabilities
respectively. However, as per specific IFRS 5 requirements, 2022
comparative figures have not been restated and therefore includes
AUBK numbers on a line-by-line basis.
The AUB Group's total assets as at
31 December 2023 increased by 0.8% to US$ 41.9 billion (31 December
2022: US$ 41.6 billion) which includes US$ 14.6 billion
representing total assets of AUBK.
The total financing receivable as at
31 December 2023 is reported as US$ 10.9 billion compared to US$
21.2 billion. However, the total financing receivables including
AUBK's financing receivables at 31 December 2023 was US$ 21.2
billion, unchanged from 2022.
The non-trading investment portfolio
is reported as US$ 10.2 billion compared to US$ 10.0 billion at 31
December 2022. However, including AUBK's non-trading-investments
balance, overall non trading income showed a strong growth to reach
US$ 11.2 billion at 31 December 2023.
The increase in financing receivable
and non-trading investments was primarily supported by strong
growth in customer deposits which increased to US$ 25.9 billion
(including AUBK's customer deposits of US$ 11.9 billion) as at 31
December 2023 from US$ 24.4 billion in 2022.
The Group's equity attributable to
owner as at 31 December 2023 increased by 4.8% to US$ 4.6 billion
(31 December 2022: US$ 4.4 billion). Return on Average Equity for
2023 increased significantly to 15.3% (2022: 12.3%) driven by
improved profitability.
The Board of Directors has
recommended a distribution of a cash dividend of US cents 2.5 per
share (2022: US cents 2.5 per share), subject to AUB Annual General
Assembly approval.
The AUB Chairman, Hamad Al-Marzouq
commented "AUB has achieved robust results and sustained its
excellent core performance in 2023 driven by its well-managed
business model based on diversification and cross border flows
seeking the effective deployment of capital resources across the
AUB Group's markets in a prudent and profitable manner.
Our results are attributable to the clearly
defined vision of the bank and to the exemplary execution of its
business strategies by its dedicated management and
staff."
He further added "During 2023, AUB
Bahrain successfully converted to a Shari'ah compliant bank. The
bank obtained a new Islamic banking license from the Central Bank
of Bahrain and commenced its operations in Bahrain as an Islamic
Bank from 10 December 2023. Necessary steps to convert its other
banking subsidiaries to become Shari'ah compliant during 2024 are
being undertaken. This key milestone, post KFH acquisition,
is in line with the aspirations of its shareholder to further
strengthen the position as a leading Shari'ah compliant bank in the
regional and global banking space."
He concluded by stating that: "We
will continue to implement our strategic plans in a focused manner
with continued emphasis on meeting client needs to fulfil the
aspirations of all our stakeholders."
About Ahli United Bank (AUB)
Ahli United Bank B.S.C (c) (AUB) is
a leading financial services provider, incorporated in Bahrain in
May 2000. AUB offers a full range of Shari'ah compliant retail, commercial and private banking & wealth
management services in Bahrain and across the MENA region and the
UK. AUB operates through its Bahrain Head Office and its
subsidiaries in Egypt, Iraq, and the UK as well as its associates
in Oman and Libya; and a branch in the UAE (DIFC).
AUB is a 100% subsidiary of
Kuwait Finance House K.S.C.P. ("KFH") a leading
pan-regional Islamic financial services provider. KFH is a
public shareholding company incorporated in the State of Kuwait on
23 March 1977 and its ordinary shares are listed in the Boursa
Kuwait and Bahrain Bourse. KFH is regulated and supervised as an
Islamic bank by the Central Bank of Kuwait.
Ends
The press release and full
set of the consolidated financial statements for the year ended 31
December 2023 are available on the AUB websites.
www.ahliunited.com
http://www.rns-pdf.londonstockexchange.com/rns/8128E_1-2024-2-28.pdf
Interim and annual financials – AUB
(ahliunited.com)