Home / Al Ahli and AUB make marriage work

Al Ahli and AUB make marriage work

Whilst other regional banks just go on talking about the merits of consolidation, recently-formed United Bank of Kuwait is making it a success.

Merging seems to have paid off for United Bank of Kuwait and Bahrain’s Al Ahli Commercial Bank. Ahli United Bank, the new entity formed from their marriage last year, posted net profits of US $40.1 million for 2000, 18% up on the two banks’ combined profits in 1999 of US $34 million.

Total assets grew 5% to reach US $3,512.4 million and operating costs were reduced 11.4% to US $68.7 million. As a result, the bank’s costs to income ratio improved to 50.2% compared to 54.9% in 1999. A dividend of 2.5 cents per share was to be recommended to shareholders at a March 31 meeting.

The need for regional banks to merge and consolidate is currently a topic of much debate across the region, but Al Ahli and United Bank of Kuwait are amongst the first to have done it successfully, let alone do it at all. The new merged entity isn’t standing still either – it’s announced that it’s also taken a 15% stake in Bank of Kuwait & The Middle East.

“This major investment comes just a few months after AUB’s start of operations and clearly underscores our seriousness and commitment to the expansion of our businesses in the GCC countries,” said Fahad Al Rajaan, deputy chairman, Ahli United Bank. The transaction was valued at US $132.8 million.

Follow us to get the most comprehensive technology news in UAE delivered fresh from our social media accounts on Facebook, Twitter, Youtube, and listen to our Weekly Podcast. Click here to sign up for our weekly newsletter on curated technology news in the Middle East and Worldwide.

REGISTER NOW | Webinar Event | Security you can bank on – Safeguarding the Middle East’s financial sector

Presented in partnership with security and network specialist Cybereason, the second in the three part webinar series will bring together a panel of experts to discuss how banks and financial institutions are evolving their service offering while simultaneously staying one step ahead of the cyber criminals who seek to bring their operations crashing to the ground.