DUBAI: Ahli United Bank’s first-quarter profit fell 56 percent compared with the same quarter last year when the bank benefited from a one-off gain from the proceeds of a disposal.
Bahrain’s largest bank reported net profit for the first three months of 2014 of $136.6 million, compared with $309.9 million in the same period of 2013.
The bank had booked a $212.9 million gain in the first quarter of 2013 after selling a 29.4 percent stake in Qatar’s Ahli Bank to Qatar Foundation, a non-profit organization.
Excluding the one-off gain, Ahli United said its first-quarter profit rose 41 percent. Arqaam Capital had expected the bank to make a net profit of $110 million in the first quarter. AUB has been the subject of M&A speculation, with sources telling Reuters recently that a stake in the bank could be sold or it could be merged with another bank.
The bank’s chairman, Fahad Al-Rajaan, said in the statement that the bank would look to expand its banking franchise further through “value-accretive” organic or inorganic means, where feasible.
Chief Executive Adel El-Labban said in October that the bank looking for acquisitions in both new and existing markets as it tries to build a network across the Middle East region.
The bank has operations in six Middle East and North African countries, as well as Britain.
AUB said its net profit in the first three months of 2014 benefited from growth in core recurring earnings, with net interest income up 13.2 percent year-on-year. This was driven by an improved net interest margin resulting from placing cash in high-yielding assets, it said.
Loans and advances stood at $17.8 billion at the end of March, up 2.9 percent from the end of 2013, while deposits gained 3.6 percent over the same time frame to $22.8 billion.
Ahli United Bank Q1 net profit falls 56%
