United Arab Bank (UAB) on Thursday posted a net profit of Dh83.3 million for first half of 2022 as compared to Dh26.9 million in the same period last year, representing a year-on-year increase of 209 per cent.
The growth in net profit is a result of improved operating performance and lower expected credit losses, coupled with disciplined cost control and a prudent approach to risk management which resulted in lower cost of risk.
The UAB’s financial performance was aided by a significant progress within the ‘core’ businesses recording a nine per cent increase in operating profit compared to first half of 2021. Total Income increased by three per cent whilst operating expenses continue to be robustly managed and recorded a reduction of three per cent comparing to same period in 2021.
The bank’s balance sheet has been significantly strengthened with a focus on quality assets which resulted in recording 52 per cent reduction in provisions compared to the first half of 2021. These results provide further evidence that the bank is well positioned to set sail on its growth journey.
Sheikh Faisal bin Sultan bin Salem Al Qassimi, Chairman of the board of directors of UAB, said the bank continues to strengthen its core businesses; streamline the cost base; and maintain key banking fundamentals.
“The bank is moving ahead according to a well-thought-out strategy that supports growth and shareholders' expectations. We are confidently looking forward to 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,” he said.
Shirish Bhide, chief executive officer of UAB, said: “We are optimistic about the UAE economy and its ability to weather challenges and equally about the bank’s ability to overcome challenges and will continue to chart a path of sustainable growth and profitability for all our stakeholders. We will pursue our ambitious vision relentlessly and accelerate the pace of investments in our growth strategy whilst upholding the highest standards of compliance and internal controls commensurate with the dynamic regulatory framework and cyber security requirements.”
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