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United Arab Bank posts 45% surge in 2025 profit as assets and income climb
A key highlight of the year was the Sharjah-based lender’s successful Dh1.03 billion rights issue, which increased the bank’s paid-up capital by around 50%
- PUBLISHED: Wed 11 Feb 2026, 10:39 PM
United Arab Bank (UAB) reported a sharp rise in profitability for the 2025 financial year, posting a 45 per cent jump in net profit on the back of strong asset growth, improved efficiency and a significant boost in non-interest income.
The bank recorded a net profit of Dh438 million for the year ended 31 December 2025, up from Dh301 million in 2024. Total income climbed 31 per cent to Dh797 million, fuelled by what the bank described as “strong momentum” across its core businesses. Non-interest income surged by 56 per cent, while net interest income rose 24 per cent.
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UAB’s balance sheet also expanded meaningfully, with total assets rising 26 per cent year-on-year to Dh27 billion. Loans, advances and Islamic financing grew at the same pace, while customer deposits increased 31 per cent, underscoring what the bank said was rising customer confidence and a stronger funding base.
The bank’s board recommended a cash dividend equivalent to 25 per cent of net profits for FY 2025.
Chairman Sheikh Mohammed bin Faisal bin Sultan Al Qassimi said 2025 marked a pivotal year for the bank as it celebrated its golden jubilee and unveiled a refreshed brand identity. “It proved to be a transformative period for UAB, reinforced by decisive strategic initiatives and robust financial performance,” he said. “Operationally, the Bank delivered solid profitability, supported by disciplined execution, prudent risk management, and enhanced operating leverage.”
A key highlight of the year was UAB’s successful Dh1.03 billion rights issue, which increased the bank’s paid-up capital by around 50 per cent. The chairman described it as “one of the largest rights issues executed in 2025 in terms of new capital raised relative to existing capital.”
He added that the strengthened capital base “positioned [the bank] strategically to pursue sustainable growth opportunities with confidence,” noting that the bank also planned to accelerate digital and AI-driven transformation and deepen customer relationships in the year ahead.
UAB also reported healthy asset quality, with a net reversal of impairment charges amounting to Dh51 million, translating to a cost of risk of –41 basis points. The bank attributed this to strong recoveries and its “robust risk framework.” Its cost-to-income ratio improved to 46 per cent, down from 52 per cent the previous year, while return on shareholders’ equity stood at 16 per cent.
The lender further strengthened its funding profile by securing a Dh1 billion senior unsecured dual-tranche term loan facility in the final quarter of the year.
In recognition of its improved financial performance, global ratings agencies issued upgrades during the year. Moody’s raised UAB’s deposit ratings to Baa2, while Fitch Ratings and Capital Intelligence each upgraded the bank’s viability and core financial strength ratings, maintaining stable outlooks.
Chief Executive Officer Shirish Bhide said the bank’s progress reflected ongoing investment in technology, people and customer experience. “We made meaningful advances in our digital transformation journey, by launching our fully revamped mobile banking app… and enabling AI-powered personal banking experiences,” Bhide said. “Looking ahead… we remain firmly focused on delivering strong and sustainable returns, driving innovation, enhancing everyday banking convenience, and raising the bar on customer service excellence.”
