Bahrain's Ahli United Bank Q4 profit rise

Ahli United Bank, Bahrain's largest lender, posted a 9.2 per cent rise in fourth-quarter net profit, as provisioning dropped while deposits and loans grew, the bank said on Tuesday.

The lender made a net profit of $70.3 million for the final three months of the year, compared to a $64.4m profit in the same period in 2010, it said in a statement.

Full-year profit came in at $310.6m, up 17 per cent on the $265.5m profit recorded in 2010, the statement said.

"AUB continued its solid performance in 2011 against the backdrop of a very challenging global business environment whose risks are continuing," said Fahad al-Rajaan, chairman of AUB.

Provisioning dropped 14.4 per cent to $129.8m for 2011, although non-performing loans ticked up slightly to 2.5 per cent from 2.4 per cent in 2010.

Loans and advances advanced 7 per cent to $15.5 billion in 2011, compared with $14.5bn in the previous year.

Deposits grew 16.9 per cent over the course to 2011 to $17.3bn, as opposed to $14.8bn at the end of 2010.

The board of directors recommended a cash dividend of $0.03 per share as well as a 5 per cent bonus share issue.

Fitch Ratings affirmed the bank at BBB+ in early January on its "solid operating profit despite the challenging operating environment in some of its markets, sound liquidity and asset quality, and the successful expansion of its franchise."