The resultant basic earnings per share were 3.3 US cents, compared to 2.8 cents achieved in the first half of last year.

The second quarter net profit for this year was 20.2 percent higher at $ 84.4 million compared to $70.2 million for the second quarter of last year.

“Net interest income increased by 16.8 percent from $239.2 million in first half of 2010 to $ 279.5 million at end of first half of 2011,” according to a bank statement.

AUB’s major associate banks in Qatar and Oman continued their strong performance in 2011 resulting in AUB’s share of profits from associates increasing to $31.2 million in the first half of 2011 compared to $23.6 million in the same period last year.

Overall cost income ratio improved to 31 percent in first half of 2011 from 32.4 a year ago.

Non-performing loans remained stable at 2.4 percent with provision coverage increased to 128 percent, including collective impairment provision, as compared to 106 percent as of June 30, 2010.

The Group’s return on average equity for the first half of this year stood at 13.3 percent, compared to 12.3 percent achieved in the first half of 2010. Return on average assets also improved to 1.3 percent for the first half of this year.

Group’s total assets grew by 4.1 percent to $27.6 billion from $26.5 billion at Dec. 31, 2010 attributable mainly from additional customer deposits, prudent deployment in assets with a focus on maintenance of solid liquidity given the prevailing regional business climate.

These results were made possible by strong support from AUB’s stakeholders, which were further evidenced by capital funding from International Finance Corporation (IFC) and the IFC Capitalization Equity and Debt Funds during the period.

IFC Capitalization Funds provided AUB with $125 million new Tier I qualifying equity and $165 million Tier II qualifying subordinated debt.

An agreement was also executed with IFC to extend the maturity date of its existing Tier II $200 million subordinated debt from Dec. 15, 2016 to Dec. 15, 2018, thereby increasing its capital effectiveness for AUB.

“AUB’s strong performance for the first half of 2011 against the backdrop of unsettled regional political and economic conditions is very satisfactory, ” said AUB Chairman Fahad Al-Rajaan.

“The capital infusion by IFC Capitalization Funds in April 2011 following execution of landmark deals on March 31, 2011 is another testimony to AUB’s strong fundamentals and credentials as a major regional banking institution.”