United Arab Bank (UAB) reported a net profit of Dh255 million in 2023, a 65% increase from the previous year, due to improved operating performance, lower expected credit losses, and disciplined cost management. The bank’s total operating income grew by 15% in 2023, with total assets rising 25% year-on-year to Dh17.6 billion, driven by loans, advances, Islamic financing, and the investments portfolio.
UAB’s capital adequacy ratio of 19% and CET1 ratio of 13.5% remained well above regulatory requirements and supported credit growth. The bank’s NPL ratio improved from 8.2% in the previous year to 5% in 2023. UAB remains focused on growing its core businesses and revenues across wholesale banking, retail banking, and treasury and capital markets segments, while moving towards a more agile operating model that offers digital solutions and capabilities.
Commenting on the bank’s financial results, Sheikh Faisal bin Sultan bin Salem Al Qassimi, Chairman of the Board of Directors, UAB, said:
‘We remain focused on capitalising on the sound foundation that has now been built, with future growth pursued in a responsible and a sustainable manner. We also remain committed to supporting the growth ambitions of the country, whilst delivering superior returns to our shareholders.‘
Shirish Bhide, CEO of UAB, emphasised the bank’s commitment to excellence, highlighting the bank’s ongoing focus on maintaining asset quality.
“UAB has significantly improved its asset quality, having more than halved the NPL ratio to 5% in 2023 from 11.6% just two years ago.”
He said;
‘The balance sheet was further strengthened by raising $150 million of Additional Tier 1 capital and a two-year Dh735 million medium-term borrowing at market competitive rates. In addition to onboarding new clients and launching new products across business segments, including green sustainable finance products during COP28, UAB also saw an increase in CASA deposits and improved client connectivity.‘
Looking to the future, Bhide said:
“We are confident we can deliver on our strategy by building on the significant progress we have attained over the past year with the constant support of our loyal customers and employees. Our relentless focus remains on delivering relevant products and services to our customers, and using technology and service to constantly enhance their banking experience.”
