UAB posts 166% growth in net profit thanks to resilient business strategy – News

Sharjah-based lender attributes net profit growth to improved operating performance, lower expected credit losses and a cautious approach to risk management



UAB’s total revenue increased by 4% compared to the same period in 2021. — Photo provided

Published: Wed 9 Nov 2022, 4:44 PM

Last update: Wed 9 Nov 2022, 4:45 PM

United Arab Bank (UAB) announced a net profit of 119 million dirhams for the first nine months of 2022, an increase of 166% compared to the corresponding period of 2021, which shows its resilient business strategy.

United Arab Bank (UAB) said on Wednesday its net profit jumped 166% to 119 million dirhams in the first nine months of 2022 due to its resilient business strategy.

In a statement, the Sharjah-based lender said the growth in net profit was the result of improved operating performance and lower expected credit losses and a cautious approach to risk management which resulted in a reduction in the cost of risk.

UAB’s financial performance was helped by significant progress within the ‘core’ business registering a 7% increase in operating profit compared to the first nine months of 2021. Total revenue increased by 4% compared to at the same time in 2021.

The balance sheet has been significantly strengthened with a focus on quality assets, resulting in a 57% reduction in provisions compared to the first nine months of 2021. These results provide further evidence that the Bank is well positioned to start growing.

“We are satisfied with the financial performance of the bank for the first nine months of 2022. The bank has returned to profitability thanks to the execution of an effective strategy. The bank is moving forward with a well-thought-out strategy that supports growth and shareholder expectations,” said Sheikh Faisal bin Sultan bin Salem Al Qassimi, Chairman of the Board of UAB.

“We look confidently to the future and are continuously developing our business model and activities in line with our strategy for sustainable growth in the UAE,” he said.

Shirish Bhide, CEO of UAB, said, “We will relentlessly pursue our ambitious vision and accelerate the pace of investment in our growth strategy while adhering to the highest compliance and internal control standards commensurate with the executive. dynamic regulatory and cybersecurity requirements. ”

He added: “Our customers remain at the heart of our growth strategy, and we will continue to invest in the development of the bank’s digital platforms to increase competitiveness and create a more efficient, resilient and seamless service at a pace adapted to expectations. of our customers. ”

KEY POINTS TO REMEMBER

> 4% growth in total operating income in Q3 YTD 2022 compared to Q3 YTD 2021

> Operating Result increased by 7% compared to Q3 YTD 2021

> Provisions for credit Losses decreased by 57% compared to Q3 YTD 2021

> Adequate liquidity profile with UAB comfortably above regulatory requirements

> An advance on stable resources of 88% and an eligible liquidity ratio of 17%

> The capital remains above regulatory requirements with a CET1 ratio of 12.3% and a capital adequacy ratio (CAR) of 13.5%

> Provision cover reported at 123% while NPL ratio decreased to 10.3% from 14.4% in Q3 2021

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