Ahli United Bank Raises Capital By 50%
Ahli United Bank-Egypt, subsidiary of Bahraini Ali United Group, raised its paid up capital by 50%, reaching EGP 1.125 billion in 2011, compared with EGP 750 million in 2010. AUB Egypt’s general assembly approved distributing capital on 112.5 million shares with a par value of EGP 10 per share. The increase value is covered by issuing 37.5 million shares.
Besides, AUB approved increasing issued capital from EGP one billion to EGP 2.5 billion. This increase will allow the Bank to double its paid up capital without having the approval of the general assembly or banking regulators.
Nevine El-Mesery, CEO of AUB-Egypt, said that this capital increase will allow the Bank to further support Egypt’s economy as this increase will be used in lending, investment, increasing branches and developing the Bank’s banking transactions.
AUB-Bahrain will guarantee the coverage of the IPO of the increased paid up capital shares whose value is EGP 375 million.
Such an increase is part of the lender’s efforts to support Egyptian government in backing national economy and increasing growth rates, El-Mesery noted. In addition, this move also reflects the lender’s commitment to implement its plans and develop capital base.
AUB’s financial results showed a 19.1% increase in net profit, as it registered EGP 195.6 million in 2011, compared with EGP 164.2 million in 2010. Besides, return on average equity reached 19.1% in 2011, compared with 17% in 2010.
The value of loans offered to AUB’s customers surged by EGP 0.4 billion, as it registered EGP 5.4 billion on December 31st 2010, compared with EGP 5.8 billion on December 31st 2011. This growth in loans is covered by the increased value of deposits which is increased by EGP 2.6 billion as it reached EGP 10.8 billion at the end of 2011, compared with EGP 8.2 billion at the end of 2010.
In addition, Ahli United Mortgage Company, subsidiary of AUB Group, plans to offer mortgage solutions and services as well as finance leasing services.
It is worth mentioning that AUB has launched its first mutual fund, “ Wealth Fund”, last February that acquired the first rank after two weeks.
