Annual Report - Ahli United Bank

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Annual Report - Ahli United Bank

Notes to theConsolidated Financial Statements31 December 20091 CORPORATE INFORMATIONThe parent company, Ahli United Bank B.S.C. (AUB or the Bank) was incorporated in the Kingdom of Bahrain on 31 May 2000 originally asa closed company and changed on 12 July 2000 to a public shareholding company by Amiri Decree number 16/2000. The Bank andits subsidiaries as detailed below (collectively known as the Group) are engaged in retail, commercial, Islamic and investment bankingbusiness, global fund management and private banking services through 85 branches, as at 31 December 2009, in the Kingdom ofBahrain, the State of Kuwait, the Arab Republic of Egypt, Republic of Iraq and the United Kingdom. It also operates in the State of Qatarand Sultanate of Oman through its associates with a network of 33 branches as at 31 December 2009. The Bank operates under aretail banking licence issued by the Central Bank of Bahrain. The Bank’s registered office is located at Building 2495, Road 2832, Al SeefDistrict 428, Kingdom of Bahrain.The consolidated financial statements for the year ended 31 December 2009 were authorised for issue in accordance with a resolution ofthe directors on 24 February 2010.2 BASIS OF CONSOLIDATIONThe consolidated financial statements comprise the financial statements of the Bank and its subsidiaries as at and for the year ended 31December 2009. The financial statements of the subsidiaries are prepared for the same reporting year as the Bank, using consistentaccounting policies.All material intra-group balances, transactions, income and expenses and profits and losses resulting from intra-group transactions areeliminated on consolidation.Subsidiaries are fully consolidated from the date on which control is transferred to the Group. Control is achieved where the Bank has thepower to govern the financial and operating policies of an entity so as to obtain benefits from its activities. The results of subsidiariesacquired are included in the consolidated statement of income from the date of acquisition.The following are the Bank’s principal subsidiaries:Nominal holding*NameCountry of incorporation31 December200931 December2008Ahli United Bank (U.K.) PLC (AUBUK) United Kingdom 100% 100%The Bank of Kuwait and the Middle East K.S.C. (BKME) State of Kuwait 74.9% 74.9%Kuwait and Middle East Financial InvestmentCo. K.S.C. (closed) (KMEFIC), a subsidiary of BKME.State of Kuwait 75.2% 75.4%Ahli United Bank (Egypt) S.A.E. (AUBE) Arab Republic of Egypt 50.7% 50.7%Commercial Bank of Iraq P.S.C. (CBIQ) Republic of Iraq 51.5% 50.0%* Adjusted for subsidiaries’ holdingsSubsequent to the balance sheet date, AUB’s equity stake in AUBE increased from 35.3% to 79.6% following a tender offer to AUBE’sshareholders which concluded on 17 January 2010. This resulted in AUB acquiring 26.6 million AUBE shares at Egyptian Pounds (LE) 37per share. The purchase consideration was settled by payment in cash LE 688.8 million (under the cash offer), issue of 74.2 million AUBordinary shares and issuance of US$ 18.0 million subordinated bonds.52 AUB Annual Report 2009

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