pdf - 1.26 MB - Ahli United Bank

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pdf - 1.26 MB - Ahli United Bank

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

24 EARNINGS PER SHARE

Basic earnings per share is calculated by dividing the net profit for the year attributable to the Bank’s ordinary equity

shareholders less Class A and B preference share dividends, by the weighted average number of ordinary shares outstanding

during the period.

Diluted earnings per share amounts are calculated by dividing the net profit attributable to the Bank’s ordinary equity

shareholders by the weighted average number of ordinary shares outstanding during the year plus the weighted average

number of ordinary shares that would be issued on the conversion of Class A and Class B preference shares into ordinary

shares.

The convertible subordinated debt issued (note 20(a)) is anti-dilutive for 2008 and 2007 and therefore ignored in calculating

diluted earnings per share. The number of ordinary shares potentially issuable upon conversion of this debt amounts to 161.3

million shares as at 31 December 2008 (31 December 2007: 161.3 million).

The following reflects the income and share data used in basic and diluted earnings per share computations :

2008 2007

US$ ’000 US$ ’000

Net profit for basic earnings per share computation

Net profit attributable to Bank's equity shareholders 255,723 296,317

(Less): Class A preference share dividend - (15,366)

(Less): Class B preference share dividend (3,493) (5,716)

Adjusted net profit attributable to Bank's ordinary equity shareholders for

basic earnings per share 252,230 275,235

Net profit for diluted earnings per share computation

Net profit attributable to Bank's equity shareholders before preference share dividend 255,723 296,317

Add: Staff costs - fair value amortisation of share based transactions 4,730 5,196

Adjusted net profit attributable to Bank's ordinary equity shareholders for diluted

earnings per share 260,453 301,513

87

ANNUAL REPORT 2008

Number of shares

(in millions)

2008 2007

Weighted average number of ordinary shares for basic earnings per share 4,506 3,325

Effect of dilution – Class A preference shares (note 21(e)) - 636

Effect of dilution – Class B preference shares (note 21(f )) 91 252

Weighted average number of ordinary shares for diluted earnings per share 4,597 4,213

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