- Net Profit of AED28m
- Loans : Deposits ratio improved to 85%
- Solid liquidity profile maintained with UAB comfortably above regulatory requirements
- Capital Adequacy Ratio stable at 13.2%
- ‘Non-core’ portfolio managed down to less than 4% of Total Loans
United Arab Bank P.J.S.C (“UAB” or “the Bank”) reports its Financial Results for the Three Months to 31st March 2017.
UAB reported a Net Profit of AED28m for Q1 2017 aided by more than 50% reduction in Provision for Credit losses given further contraction in high risk ‘Non-Core’ portfolio (which now constitute less than 4% of Total Loans).
Last 18 months represented a period of transition for UAB as the Bank embarked on its journey to become a safer, stronger and sustainable Bank. As part of this strategy, the Bank set out its priorities: strengthen its core businesses; run down non-core portfolios; streamline the cost base; and steadily improve its key banking fundamentals. Against each of these objectives UAB has continued to record tangible progress in Q1 2017.
The Board and Management Team remain fully committed to completing the transformation which will ultimately provide the platform for UAB to generate sustainable returns for its shareholders across the medium term.
Sheikh Faisal Bin Sultan Bin Salem Al Qassimi, Chairman of the Board of Directors, said, “The operating performance for Q1 2017 demonstrates tangible progress against our transformation strategy.
The challenges which the Bank has now largely overcome were significant, yet the decisive actions taken will see UAB well placed to deliver shareholder value in the medium term.
We remain committed to completing our strategy and believe that our low risk business model will make UAB a safer, stronger and sustainable Bank and ensure it continues to play a key role in supporting the broader UAE economy.”
Samer Tamimi, Acting Chief Executive Officer, commented, “2017 represents the final stage of UAB’s transformation journey as the cost of risk begins to normalize, the Bank effectively completes the exit of its residual higher risk non-core portfolio and core business units begin to grow. To that effect the first quarter delivered tangible progress against these milestones.
The Bank’s NPL ratio of 5.9% is supported by legacy ‘non-core’ SME exposures reducing to less than 4% of Total Loans, with the Provision coverage standing at 117%.”