Dubai, UAE – United Arab Bank (UAB) has reported a net profit of approximately AED 209 million ($57 million), a significant increase of 76% compared to the same period in 2021.
The performance can be attributed to the bank’s improved operating performance, resulting in lower expected credit losses and a reduced cost of risk. The total income for the period was approximately AED174 million ($47 million), showing a remarkable 61% year-on-year increase and a 16% quarter-on-quarter increase.
UAB has strengthened its balance sheet by focusing on high-quality assets, leading to a substantial 43% reduction in provisions compared to the first nine months of 2022. These results reflect the bank’s commitment to sustainable growth in the United Arab Emirates.
Sheikh Faisal bin Sultan bin Salem Al Qassimi, Chairman of the Board of Directors, UAB, said: “The bank continues to deliver a strong performance, clinically executing its well-thought-out strategy, supporting growth and shareholders’ expectations. We remain confident in taking advantage of the opportunities ahead of us, as we continuously develop our business model and activities in line with our sustainable growth strategy in the UAE.”
“These results reflect the successful execution of our strategy to strengthen the core businesses, manage our resources effectively, while adhering to our prudent approach towards risk management. The affirmation of our credit ratings by, both, Fitch and Moody’s and the latter’s upgrade of the outlook to positive, is a clear testament of the progress the bank has made over the past year in addressing the legacy concerns,” Shirish Bhide, Chief Executive Officer of UAB, said.
He continued, “The bank is well positioned to continue capitalizing on the growth momentum experienced over the last several quarters, albeit maintaining a cautious outlook in view of the ‘higher for longer’ expectations on interest rates and relatively slower growth ahead”.
