Media ININ Economy We Trust
03-03-2019 Media in\ Dubai
United Arab Bank reported a net profit of AED 77 million for the 12 months ended December 31, 2018, a 345% increase over last year. The successful implementation of the restructuring strategy paved the way for a return to profitability.
The Bank’s restructuring process has four pillars: reducing non-core and high risk portfolios in a prudent manner, rationalizing expenses, directly supervising and strengthening risk frameworks, and establishing basic banking fundamentals.
HE Sheikh Faisal bin Sultan bin Salem Al Qasimi, Chairman of UAB, said: “The good financial performance achieved by the Bank last year is a direct result of placing its customers first. This is due to the essence of the business strategy led by their management team. The Bank is on a continuous journey of progress and diversification, which requires a careful balance of design, dedication and continuous enhancement of its banking experience as well as support to the Bank in all respects to ensure sustainable returns.
The Bank has continued to make significant progress in reducing its non-core and higher risk portfolios by one per cent of total loans by the end of 2018.
Total income was AED 647 million in 2018, supported by a 11 percent increase in interest income in 2018 compared to 2017.
The Bank’s liquidity ratios remained strong, as reflected by the loan-to-deposit ratio of 91 per cent, while customer deposits remained at 78 per cent of total liabilities and were the main source of funding for the Bank.
Provisions for credit losses amounted to AED 242 million, representing a decrease of 16 per cent compared to 2017, supported by prudent risk management and prudent risk reduction of assets with high risk ratios. The ratio of these assets is expected to continue to decline in the medium term as a result of the lower risk business model Depends on the bank.
