United Group profits up 5.6% to $ 377.5 million in first half

The Ahli United Bank group posted net profit after minority interests of $ 377.5 million in the first half of 2019, up 5.6% from the same period in 2018, which recorded $ 357.4 million. USD.
In the second quarter, United posted a net profit of $ 184.7 million, compared to $ 182.7 million for the same period in 2018, an increase of 1.1%.
Basic earnings per share increased 5.1% to 4.1 cents in the first half of this year from 3.9 cents for the same period last year and 1.9 cents for the second quarter of 2019, compared with 1.9 cents for the same quarter of 2018.
The operating profit of the group rose 2.9% to $ 630.1 million in the first half of this year, compared to $ 612.4 million for the same period last year.
This increase is due to a $ 490.2 million increase in the Bank's net interest income in the first six months of the year, compared to $ 467.2 million for the same period last year. previous year, an increase of $ 22.9 million, or 4.9%, mainly due to the growth in average loans and investments. .
Net operating income was also up 4.5% to $ 595.8 million from $ 570.1 million for the same period in 2018.
This comes at a time when initiatives to improve the efficiency of operations and the management of items of expenditure have helped to maintain a high efficiency of operations: the total cost / product ratio is 26.5%, compared with 26%. , 1% for the first half of 2018.
Due to its prudent credit policy and prudent risk management, UGB has continued to maintain excellent quality indicators for its credit portfolio, despite the difficulties related to the operating environment, with non-performing loans representing only 2% of the total credit portfolio, compared to 1.9%. At December 31, 2018.
The Bank continued to provide a high hedge ratio of 85.1% of specific provisions for these badets, compared with 85.5% at December 31, 2018.
The overall coverage of the credit portfolio with general and specific provisions was 188.6% as of June 30, compared with 214.7% as of December 31, 2018.
The group's total badets increased by 7.1% to $ 30 billion as at June 30, compared to $ 35.5 billion as at December 31, 2018.
Average return on badets was 2.2% in the first half of this year, compared to 2.3% for the same period in 2018.
Shareholders' equity stands at $ 3.9 billion, up from $ 3.9 billion at the end of 2018. The average return on equity was 18.4% in the first half, compared to 18.8% in the first half. same period last year.

Othman
Mashaal Abdulaziz Al Othman, chairman of the group, said that despite current regional developments and economic conditions in a number of key markets, Al Mehda again achieved solid financial results in the first half of this year. year. Maintain healthy, conservative growth in sales and net income from its core banking operations.
He emphasized that the performance clearly indicated the soundness of the Group's business model, which aimed to diversify its business and expand its activities in a sectoral and geographic manner, while emphasizing its pioneering regional role as a channel. active and privileged bank for mutual fund transactions and financial flows by clients in the region.
He emphasized that the Group relies on an effective methodology for managing risk, operating costs, managing capital resources and using it effectively to take advantage of growth opportunities and serve customers in its current and target markets.