UAB’s Q3 profit surges 39% to record Dh414m

The Sharjah-based lender’s third-quarter net profit reached Dh414 million, the highest ever quarterly results the bank recorded since its inception in 1975. The bank generated a year-to-date operating profit of Dh524 million, a 37 per cent increase over Dh382 million reported for the same period in 2012.

The bank’s total income increased by 37 per cent to Dh753 million, with strong underlying performance across both net interest income and other income, up 39 per cent and 29 per cent, respectively, versus prior year. In the nine months ended September 30, 2013, the lender’s customer loans and advances increased by 36 per cent to Dh14.81 billion from Dh10.88 billion as at December 31, 2012 while customer deposits recording similar impressive growth to reach Dh13.74 billion.

“UAB’s growing momentum enabled the bank to generate record quarterly results. Such performance reinforces the winning strategy of the bank, where we place our clients at the heart of our approach to deliver long-term value for customers, shareholders and key stakeholders alike,” chairman Shaikh Faisal bin Sultan bin Salem Al Qassimi, said.

Provisions across the first nine months were Dh110 million, compared to Dh85 million for the same period in 2012. The bank continues to take a prudent and proactive approach to risk management with the loan loss coverage ratio standing at 98 per cent as at September 30, 2013 and remains in line to comply with UAE Central Bank requirements.

“It’s extremely positive to see such impressive performance across all business units. We fully expect this growth trajectory to continue due to our strong fundamentals and ability to grow. Our robust strategic, operational and financial roadmap comprises a growing branch network, complementing our customer-centric approach, as well as our responsiveness to customer needs. This ensures we are competitive and well positioned to benefit from improving market conditions. These financial results underpin the proven benefits of our strategic alliance with the Commercial Bank of Qatar and we expect to play an integral part in supporting the future growth of the local economy,” Paul Trowbridge, chief executive officer of UAB, said.

“The bank’s Q3 results are outstanding and demonstrates our ability to go from strength to strength. Such performance is only possible if your organisation truly places customers at the focal point of its business,” Trowbridge concluded.

— muzaffarrizvi@khaleejtimes.com