Profit rose by more than a quarter over 2013 corresponding period
The United Arab Bank has announced its financial results for the six months ended 30 June 2014, showing a net profit of Dh328 million and registering an increase of 26 per cent over H1, 2013.
Sheikh Faisal bin Sultan bin Salem Al Qassimi, Chairman, said, “We are well placed to take advantage of future growth opportunities across the Emirates and continue to benefit tremendously from the solid platform created by the banking alliance that we share with The Commercial Bank of Qatar (CBQ), National Bank of Oman (NBO) and Alternatifbank in Turkey.”
Paul Trowbridge, Chief Executive Officer commented on the Bank’s half year results, “The improving business mix and efficiency of our funding have led to a significant increase in Loans and Advances and Customer Deposits. These increased volumes are a direct result of our proactive enhancements and continued efforts to identify and develop new income drivers. With this outstanding performance, we are set to take advantage of the positive economic outlook for the UAE and the region”.
The bank generated Operating Profit of Dh475m, a 43 per cent uplift over prior year. Total Income increased at rate of 41 per cent to Dh676m, with solid performance across both Net Interest Income and Non-Interest Income, up 40per cent and 46per cent respectively versus H1 2013.
Non-Interest Income, a general benchmark indicating the depth of customer relationships, expanded strongly in the first half to Dh183m, driven primarily by Other Operating Income (Dh80m) and Net Fees and Commissions (Dh61m). With Non-Interest Income representing 27 per cent of Total Income in H1 2014, our strategic emphasis on building and developing customer relationships continues to reap rewards.
Operating Expenses for the first six months were Dh201m versus Dh146m for the same period in 2013, and remain in line with management expectations. Our ongoing network expansion programme continued across Q2, with the Bank now benefiting from 27 fully operational branches across the Emirates, with other locations planned in the second half of 2014.
Nevertheless, despite UAB’s sustained investment to improve the overall customer experience and developing infrastructure to support future growth, the Bank’s Cost : Income Ratio improved to 29.7 per cent.
Provision charges in H1 2014 were Dh147 m, compared to Dh72 m for the same period in 2013. The accelerated booking of General Provisions will ensure full and early satisfaction of central bank requirements.
In parallel, the Bank continues to take a cautious and proactive approach to risk management, with our track record of growing our asset portfolio whilst maintaining quality evidenced by our sector leading Non-performing Loan Ratio (1.50 percent) and Coverage Ratio (134 per cent) as at 30 June 2014.
Total Loans and Advances improved by 35per cent to Dh17.9 bn versus H1 2013, with growth across all business units. Similarly, Customer Deposits increased by an outstanding 49per cent in the same period to stand at Dh18.6 bn, further reinforcing the depth of our customer relationships and ongoing sustainability of UAB’s growth strategy.
Originally published on http://www.emirates247.com