Dubai, UAE — United Arab Bank has reported an 80 percent increase in net profit for the first quarter of 2023 to AED54.8 million ($14.92 million) compared to AED30.4 million in Q1 2022, owing to improved net interest income and lower provision charges.
The bank reported a 5 percent growth in its total operating income in Q1 2023 as compared to Q1 2022, driven by a 38 percent increase in net interest income.
The bank said in a statement that provision charges have reduced by 91 percent in Q1 2023 as compared to Q1 2022 as the “bank improved its portfolio underwriting in higher quality assets and achieved higher recoveries”.
Its capital base increased by $150 million through the issuance of AT1 capital instrument which has raised the bank’s capital adequacy ratio (CAR) to 19.3 percent and boosted its Tier 1 Capital ratio which recorded 18.1 percent, both of which are well above the applicable regulatory requirements.
Sheikh Faisal bin Sultan bin Salem Al Qassimi, Chairman of the Board of Directors UAB, said, “The results reflect successful execution of the bank’s strategy to strengthen its core businesses, manage its resources effectively, and follow a prudent approach to reduce risks. We will continue focusing on modernizing the technical infrastructure and adhering to the best banking practices that would enable us to improve customer experience and achieve sustainable returns for our shareholders.”