United Arab Bank net profit surges 198% in Q1

The Sharjah-based lender attributed the increase in profits to the successful execution of the turnaround strategy



The UAB’s financial performance was aided by a significant progress within the ‘core’ businesses recording a three per cent quarter-on-quarter uplift in total operating income. — File photo
The UAB’s financial performance was aided by a significant progress within the ‘core’ businesses recording a three per cent quarter-on-quarter uplift in total operating income. — File photo

By Staff Report

Published: Wed 18 May 2022, 6:48 PM

United Arab Bank has announced that its first-quarter net profit surged 198 per cent to Dh30.4 million from Dh10.2 million in the same quarter last year.

The Sharjah-based lender attributed the increase in profits to the successful execution of the turnaround strategy that has paved the way for a return to sustainable profitability with UAB continuing to strengthen its core businesses, streamline the cost base and maintain key banking fundamentals.

The UAB’s financial performance was aided by a significant progress within the ‘core’ businesses recording a three per cent quarter-on-quarter uplift in total operating income, whilst operating expenses continue to be robustly managed and recorded a reduction of eight per cent quarter-on-quarter basis.

The balance sheet has been significantly strengthened with a focus on asset quality, which resulted in a 55 per cent reduction in net impairment loss compared to first quarter of 2021. Cost of risk reduced from 2.9 per cent in first quarter of 2021 to 1.4 per cent in first quarter of 2022.

Sheikh Faisal bin Sultan bin Salem Al Qassimi, chairman of the board of directors of UAB, said the positive results for the first quarter of 2022 reflect successful execution of the transformation strategy led by the management team at the bank.

"We will continue focusing on modernising the technical infrastructure and thus moving towards digital world while adhering to best banking practices,” he said.

“We will continue to pursue our ambitious vision and accelerate the pace of investment in digital transformation to effectively manage our resources and reduce risk, thereby enhancing our net profit and our customers' confidence in the quality of our products and services," Sheikh Faisal said.


More news from Finance
Scope of Economic Substance Regulations

Finance

Scope of Economic Substance Regulations

If the entities are carrying business only in the UAE, or entities whose income is being taxed in other countries are not subject to ESR in the UAE. ESR is not applicable to natural persons, sole proprietorships, trusts and foundations

Finance1 month ago