Investment gains, loans boost Bahrain's Ahli Q2 net

MARKET AMBITION: Ahli United Bank has been active in seeking regional expansion in recent years. (Getty Images)

Bahrain-based Ahli United Bank on Tuesday posted a 43.6 surge in second-quarter net profit to a record $117.4 million, chiefly due to an almost three-fold surge in investment income and a rise in lending.

Net income from investments that the bank said were earmarked for sale soared 186.4 percent to $62.61 million, according to a bank statement. Net interest income in the same period rose 40.6 percent to $112.59 million and net income from fees and commissions advanced 3.28 percent to $38.73 million.

Operating income for the quarter jumped 42.9 percent to $251.3 million. "The group's strategic investments have all contributed very positively, taking advantage of the cross-border deal flow opportunities..." said the bank, which operates in Bahrain, Kuwait, Qatar, Oman, Egypt, Iraq and Britain.

The record earnings were above the $112.80-million profit forecast of Global Investment House in a net profit survey last month by newswire Reuters.

Earnings per ordinary share in the quarter were 2.6 US cents compared with 2.5 cents a year earlier. Ahli United made $81.78 million of profit attributable to shareholders in the second quarter of 2007 and $94.31 million in the first quarter of this year.

In April the lender said it signed a memorandum of understanding with Britain's Legal and General Group to set up an Islamic insurance company in Britain.

Shares of the bank fell 0.01 percent to $1.25 on Tuesday - 8.7 percent below Global Investment House's $1.37 dinar fair value estimate on the stock. Earnings were released after trading hours. (Reuters)

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