Sharjah, UAE, 22 July 2018:   United Arab Bank P.J.S.C ('UAB' or “the Bank”) reported Net Profit for the six months to 30th June 2018 of AED81m, representing an uplift of 46% compared with the same period last year, primarily driven by growth in ‘Core’ Income and reduction in provision charges following a transition to a lower risk business model. 

 

Total Income for the six months recorded AED341m, with income generated from core businesses showing an uplift of 5% over H1 2017.

 

Operating Expenses for the six months were AED168m, representing 4% reduction against H1 2017 as the Bank continues to capture the benefits of the comprehensive review and subsequent overhaul of its cost base. 

 

Provision for Credit Losses for the six months were AED93m, 20% lower than the same period in 2017 as high yield ‘Non-core’ portfolio continued on its downward trajectory and now represent less than 2% of the total loan base. 

 

Sheikh Faisal Bin Sultan Bin Salem Al Qassimi, Chairman of the Board of Directors, said, “UAB delivered enhanced profits in the first half of 2018 in an increasingly competitive environment whilst maintaining a strong balance sheet and robust capital position.  

 

These results were achieved on the back of a healthy operating performance driven by higher ‘core’ business volumes and supported by disciplined risk management.”

 

Sheikh Mohamed Bin Abdulla Al Nuaimi, Acting Chief Executive Officer, commented, “With the successful completion of rights issue in early 2018, we have started a new chapter in UAB’s journey on a solid footing which positions us well to deliver sustainable returns for our shareholders.

 

As we look forward to the second half of 2018 and beyond, we will continue to strategically focus on our core businesses and continue to invest in our people, processes, systems and other critical infrastructure”