UAB reports Net Profit of AED36m for H1 2019
H1 2019 Highlights
- Interest income increased by 6% compared to prior year
- Operating Expenses decreased by 6% vs. H1 2018
- Provisions for Credit Losses decreased by 5% vs. H1 2019
- Capital Adequacy at 16.5%
- CET1 ratio at 15.4%
- Coverage ratio increased to 93.6% compared to 91.5% in December 2018
Sharjah, UAE, 31 July 2019 - United Arab Bank P.J.S.C ('UAB' or “the Bank”) announces its Financial Results for the six months ended 30th June 2019.
UAB reported a Net Profit of AED36m in H1 2019 as the Bank continues its prudent approach to recognize provisions and increase its coverage.
The Bank has reported an increase in interest income of 6% and a reduction of 6% in Operating Expenses which provides further evidence that the Bank is well placed to set sail on its growth journey.
H.E. Sheikh Faisal Bin Sultan Bin Salem Al Qassimi, Chairman of the Board of Directors of “United Arab Bank”, said: “In the first half of 2019, the bank showed consistent performance and sustainability in the development of its operations and improving the quality of its offerings, which resulted in boosting the H1 net profit. The bank is moving ahead according to a well-thought-out strategy that supports growth and shareholders' expectations. We are confidently looking forward the future and continuously developing and improving our business model and activities in line with our customer base and sustainable growth strategy in the UAE.”
Ahmad Abu Eideh, Chief Executive Officer of “United Arab Bank”, commented: “The first half year 2019 results boost the confidence of our customers and shareholders in the bank, especially in light with the interest income growth by 6% compared to the same period of last year, coupled with a 6% drop in operating expenses compared to the first half results of 2018. This is a clear indication of the Bank's ability to innovate banking solutions that enhance optimism about its activities and operations.”
“These positive results do also motivate us to work harder towards ensuring the satisfaction of our customers and shareholders. In the coming period, we will pursue our ambitious vision and invest in modern technology to more effectively manage our resources and reduce risk, thereby enhancing our net profit and our customers' confidence in the quality of our assets and services” Abu Eideh concluded.
UAB continues to strengthen its core businesses; streamline the cost base; and maintain key banking fundamentals.
Total Income recorded AED 282m supported by an increase in Interest Income of 6% in H1 2019 compared to the same period in 2018.
The Bank’s liquidity profile remains strong as evidenced by a robust Loan to Deposit Ratio of 93%. Customer Deposits (being 76% of Total Liabilities) have and will continue to represent the Bank’s key source of funds.
The Bank’s Provisions for Credit Losses of AED 88m represent a healthy reduction of 5% compared to H1 2018 supported by prudent risk management and focused efforts to maintain adequate coverage.
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