Sharjah-based United Arab Bank (UAB) reported net profits for the first six months of 2018 at Dh81 million ($22 million), representing an uplift of 46 per cent compared with the same period last year, a media report said.

The profit was primarily driven by growth in ‘Core’ income and reduction in provision charges following a transition to a lower risk business model, reported Emirates news agency Wam.

Total income for the six months recorded Dh341 million, with income generated from core businesses showing an uplift of five percent over H1 2017.

Operating expenses for the six months were Dh168 million, representing four percent reduction against H1 2017 as the bank continues to capture the benefits of the comprehensive review and subsequent overhaul of its cost base.

Provision for credit losses for the six months were Dh93 million, 20 percent lower than the same period in 2017 as high yield ‘Non-core’ portfolio continued on its downward trajectory and now represent less than two percent of the total loan base.

Sheikh Faisal bin Sultan bin Salem Al Qassimi, chairman of the Board of Directors, said: "UAB delivered enhanced profits in the first half of 2018 in an increasingly competitive environment whilst maintaining a strong balance sheet and robust capital position. These results were achieved on the back of a healthy operating performance driven by higher ‘core’ business volumes and supported by disciplined risk management."

Sheikh Mohamed bin Abdulla Al Nuaimi, acting chief executive officer, said: "With the successful completion of rights issue in early 2018, we have started a new chapter in UAB’s journey on a solid footing which positions us well to deliver sustainable returns for our shareholders."

"As we look forward to the second half of 2018 and beyond, we will continue to strategically focus on our core businesses and continue to invest in our people, processes, systems and other critical infrastructure," he concluded.