Posts net profit of Dh120m as customer loans and deposits surge

Thursday, April 18, 2013

United Arab Bank (UAB) has announced a net profit of Dh120 million for the first three months of the year, an increase of 60 per cent over the same period in 2012 and the highest quarterly net profit reported by the bank.

Sheikh Faisal bin Sultan bin Salem Al Qassimi, Chairman, said: "The bank's outstanding performance in 2012 has continued into the first quarter of 2013, delivering a record net profit in the three month period. UAB remains committed to its growth strategy of building a Bank which offers true value to our customers, shareholders and partners".

Paul Trowbridge, the bank's Chief Executive Officer, said: "Growth has been well supported through our expanding branch network and improved product offerings. We are now a truly local bank where almost half of our new customers are UAE nationals. Combining these factors with the proven benefits from the alliance with the Commercial Bank of Qatar, we expect UAB to continue on its successful journey throughout 2013 and beyond."

In the three months ended 31 March 2013, customer loans and advances increased by 8 per cent to Dh11.7 billion from Dh10.9 billion at 31 December 2012 with customer deposits up by 11 per cent to Dh11.2 billion compared with Dh10.1 billion at the 2012 year-end.

The bank has delivered a year-to-date operating profit of Dh154 million, a 38 per cent increase over Dh112 million achieved for the same period in 2012.  Total operating income was up 37 per cent to Dh226 million, driven by a 37 per cent increase in net interest income to Dh169 million and 39 per cent growth in non-interest income to Dh57 million, attributable to growth in both corporate and retail businesses.

The provision charge for the three months of 2013 was Dh34 million, compared with Dh37 million in 2012, and continues to reflect a prudent and proactive approach to general provisioning adopted by the bank with regards to its management of risk and growing asset portfolio.

UAB's growth in 2013 will be supported by its branch expansion plans in Dubai following the opening of branches in Abu Dhabi and the northern emirates in 2012. UAB's success has attracted the recruitment of top international and Emirati talent, providing further innovation and implementation of best-practice principles. UAB recently launched the Champions Forum Program, providing customers with a once in a lifetime opportunity to attend the football World Cup in 2014 whilst the SME segment, launched in 2012, continues to grow at a considerable rate.

Trowbridge said: "UAB's results in quarter one are extremely positive. The Bank continues to grow in both size and success, supported by recognition from our customers, partners and the financial community. UAB's customer loyalty program was recently awarded the Best Customer Loyalty Program in the Middle East by Banker Middle East Magazine and our corporate segment was recognised as a leading contributor to Trade Finance at the Trade & Export Middle East Awards. This is an excellent start to 2013 and our customers can look forward to several other innovations in the coming months."

He also acknowledged the strategic alliance with The Commercial Bank of Qatar (CBQ), which acquired 40 per cent of UAB in 2007 after concluding a similar alliance with National Bank of Oman two years previously.  The alliance of the three banks provides synergies across a range of business and support areas which continues to facilitate commercial growth.

The Bank is rated by Moody's as Baa1 with a stable outlook.

© Emirates 24|7 2013