Audi profits down by 15 percent

More staff expenses and investment in subsidiaries

Bank Audi SAL has registered net profits after tax of $261 million for the first nine months of 2013. This represents a year-on-year decrease by around 15 percent. However, the decrease amounts to only 5.5 percent if ‘discontinued operations’ are excluded – a one-time surge in the bank’s income in 2012 came from selling its insurance arm LIA to a Moroccan group. Return on average common equity has maintained a comfortable 14.6 percent level.

Main income sources have witnessed an increase in 2013. Net interest income has gone up by nine percent to $472 million. Fees and commission income was flat. Provisions for credit losses have gone down substantially year-on-year, as doubtful loans were largely under control.

On the expenses level, personnel expenses saw the most important surge, up by 22 percent. This was due to recent salary increases and new recruitments, especially in Turkey and other foreign subsidiaries.

Foreign entities now represent 40 percent of the bank’s assets, valued at $34.5 billion at end-September. The capital adequacy ratio (as per Basel III requirements) is around 11.8 percent.