UAB profit for H1 tops $70m
Dubai, July 17, 2013
United Arab Bank (UAB) reported a strong net profit of Dh260 million ($70.7 million) for the first half of this year, representing an increase of 35 per cent over the same period in 2012.
These results reflect the highest half yearly net profits reported by the GCC’s fastest growing bank, said UAB’s chairman Sheikh Faisal bin Sultan bin Salem Al Qassimi.
"UAB's impressive start to the year has continued, generating record half yearly results. This momentum reinforces the strategy of the bank, focusing on building long term relationships with its customers, shareholders and key stakeholders,” he said.
Paul Trowbridge, the bank’s chief executive officer, said: "Strong growth has been generated by each of our business units. Loans and advances, customer deposits and total assets have all more than doubled in the last two years. With our expanding branch network and customer centric approach, we are well positioned to continue on our current trajectory. These financial results prove the benefit of our strategic alliance with the Commercial Bank of Qatar and will help us to play a key role in supporting the future growth of the UAE economy.”
In the six months ended 30 June 2013, customer loans and advances increased by 22 per cent to Dh13.25 billion from Dh10.88 billion as at 31 December 2012; with customer deposits recording similarly impressive growth to reach Dh12.43 billion, up 23 per cent during the same period.
The bank generated a year to date operating profit of Dh332 million, a 36 per cent increase over Dh243 million reported for the same period in 2012. Total Income increased by 37 per cent to Dh478 million, with strong underlying performance across both net interest income and other income, up 36 per cent and 39 per cent respectively versus prior year.
Provisions across the first six months were Dh72 million, compared to Dh50 million for the same period in 2012. The bank continues to take a prudent and proactive approach to risk management and the loan loss coverage ratio stands at 114 per cent as at June 30, 2013.
UAB is constantly developing the foundations to support further growth. The bank continues its network expansion programme with 30 branches scheduled to be open by the end of 2013. The recent transition to a new head office also demonstrates UAB’s investment in its people and its customers.
UAB’s strategy is firmly focused on the customer. This is evidenced by the prestigious awards received in Q2 and continued enhancements to its underlying segment propositions. Following on from the launch of Retail’s ‘Champions Forum’ in Q1 and recognition as the ‘Best Customer Loyalty Program in the Middle East’, the bank launched the highly successful summer campaign in April of this year and recently received the ‘Best Domestic Retail Bank Award’ at the 2013 Banker Middle East Awards.
Trowbridge concluded: "The bank's half year results are outstanding. Such performance is only possible if you place customers at the very heart of a business. Recognition as the ‘2013 Best Domestic Retail Bank’ is most welcome as it acknowledges the innovative products and high levels of service we extend to our customers.”
He also acknowledged the continual benefits derived from the strategic alliance with the Commercial Bank of Qatar (CBQ), which acquired 40 per cent of UAB in 2007 and concluded a similar agreement with National Bank of Oman previously. In addition, CBQ's recent acquisition of Turkey’s Alternatifbank will allow the alliance to deliver further business opportunities for its customers and shareholders.
The bank is rated by Moody's as Baa1 with a stable outlook. – TradeArabia News Service
More Finance & Capital Market Stories
- GCC bonds to gain from macro-economic climate
- French Business Council Dubai members up 18pc
- Egypt economy growth seen less strong than thought
- Sharjah approves $4.2bn budget for 2014
- Saudi non-oil sector posts solid growth in Feb
- Seera total income rises to $34m
- NBAD approves 40pc cash dividends
- NBAD sees 8-10pc loan growth
- Al Basel Group launches investment arm
- Union Insurance posts $18m profit
- Oman warns banks on conflicts of interest
- Japan to lend Tunisia $480m
- 400 to join anti-laundering seminar in Riyadh
- Lebanese insurer to head Prague Club
- UAE's first REIT plans $135m IPO
- Bahrain banking industry outlook 'positive'
- New India Assurance opens Bahrain branch
- Qatar sets up mixed business incubator
- Kuwait budget spending up 8pc in April-Jan
- Thomson Reuters to host Mena IFR awards
- ADIB offers smartphone industry investment
- Gulf Finance House to start $3bn Tunisia project
- KFH completes ICT project upgrade
- Egypt urban annual inflation slows to 9.8pc
- BIBF signs deal with Palestinian institute
- Bahrain’s GDP set to expand 12pc
- KFH-Bahrain rebrands priority banking
- Bank Nizwa wins top Islamic bank award
- Qatar labour costs may jump: IMF
- Kuwait Q3 trade surplus hits $23bn