SHARJAH- The United Arab Bank, UAB, has announced its financial results for the nine months ended 30th September, 2017, reporting a net profit of AED50 million.
The performance in the third quarter reflects continued positive traction against the Banks Transformation Strategy set out in H2, 2015 to become a safer, stronger and sustainable Bank. The bank continued to strengthen its core businesses, run-down non-core higher risk portfolios, streamlined the cost base, and maintained key banking fundamentals.
Sheikh Faisal Bin Sultan Bin Salem Al Qassimi, Chairman of the Board of Directors, said, "The Board is pleased to see the improved operating performance continue into the third quarter of the current year as the Bank continues to progress well.
"We believe that our revised low risk and UAE focused business model, together with the simplification and transformation of the Bank, positions us well to continue doing the right thing for our customers and deliver sustainable returns for our shareholders."Samer Tamimi, Acting Chief Executive Officer, commented, "We have seen another period of good financial and operating performance in the quarter with the Bank." "With the transformation strategy nearing completion, non-core assets now represent 2 percent of the loan base. The benefits of branch rationalisation have resulted in operating expenses being robustly managed recording 9 percent reduction against prior year. These positive results provide further tangible evidence that our revised strategy is appropriate given the economic environment."The bank net profit for the nine months was primarily driven by growth in non-interest income and reduction in provision charges following a transition to a lower risk business model.
The provision for credit losses for the nine months were AED210m, 37 percent lower than the same period in 2016, given prudent risk management and focused reduction in risk weighted assets. Going forward, although provisions have decreased significantly, the UABs transition to a lower risk model should see these moderate further in the coming years.
The operating expenses for the quarter were AED82m, representing a 9 percent reduction against Q3, 2016 as the Bank continues to capture the benefits of the comprehensive review and subsequent overhaul of its cost base completed as part of the wider transformation strategy.
Copyright Emirates News Agency (WAM) 2017.
The performance in the third quarter reflects continued positive traction against the Banks Transformation Strategy set out in H2, 2015 to become a safer, stronger and sustainable Bank. The bank continued to strengthen its core businesses, run-down non-core higher risk portfolios, streamlined the cost base, and maintained key banking fundamentals.
Sheikh Faisal Bin Sultan Bin Salem Al Qassimi, Chairman of the Board of Directors, said, "The Board is pleased to see the improved operating performance continue into the third quarter of the current year as the Bank continues to progress well.
"We believe that our revised low risk and UAE focused business model, together with the simplification and transformation of the Bank, positions us well to continue doing the right thing for our customers and deliver sustainable returns for our shareholders."Samer Tamimi, Acting Chief Executive Officer, commented, "We have seen another period of good financial and operating performance in the quarter with the Bank." "With the transformation strategy nearing completion, non-core assets now represent 2 percent of the loan base. The benefits of branch rationalisation have resulted in operating expenses being robustly managed recording 9 percent reduction against prior year. These positive results provide further tangible evidence that our revised strategy is appropriate given the economic environment."The bank net profit for the nine months was primarily driven by growth in non-interest income and reduction in provision charges following a transition to a lower risk business model.
The provision for credit losses for the nine months were AED210m, 37 percent lower than the same period in 2016, given prudent risk management and focused reduction in risk weighted assets. Going forward, although provisions have decreased significantly, the UABs transition to a lower risk model should see these moderate further in the coming years.
The operating expenses for the quarter were AED82m, representing a 9 percent reduction against Q3, 2016 as the Bank continues to capture the benefits of the comprehensive review and subsequent overhaul of its cost base completed as part of the wider transformation strategy.
Copyright Emirates News Agency (WAM) 2017.
