GoDubai
  
  
  
  
Citylife > Press Release
  Home Contact us Add to Favourites
Most Recent Postings
More Press Releses
Featured Sections

Event Finder
A daily roundup of exhibitions, promotions and other events in Dubai and the rest of the Emirates.
Submit an Event
Latest Dubai Press Releases >>

 
  Share
H1 2017 Highlights
  • AED55m Net Profit in H1 2017
  • 50% Y-o-Y reduction in Impairment Losses
  • ‘Non-Core' portfolio managed down to 3% of Total Loans
  • Robust liquidity profile with UAB comfortably above regulatory requirements
  • Loan : Deposit Ratio managed to 97%
  • Capital Adequacy stable at 13%
Sharjah, UAE, 17July 2017: United Arab Bank P.J.S.C ('UAB' or “the Bank”) announces its Financial Results for the six months ended 30th June 2017.
UAB continues to record tangible progress against its Transformation Strategy set out in H2 2015 to become a safer, stronger and sustainable Bank. Solid performance is evidenced across H1 2017 with the Bank reporting a Net Profit of AED55m, with UAB continuing to: strengthen its core businesses; run-down ‘non-core' higher risk portfolios; streamlined the cost base; and maintained key banking fundamentals.
This transformation has enabled UAB to comprehensively streamline its activities which will underpin the delivery of sustainable returns going forward.
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 second quarter of 2017 demonstrating the strength of our ‘core' business.
Whilst the transformation strategy has delivered substantial changes to the size, shape and risk profile of the Bank, we realize the continued uncertainty in the macro-economic environment will require robust oversight of the Bank's governance and control frameworks across 2017 and beyond to protect the long-term interests of our shareholders.”
Samer Tamimi, Acting Chief Executive Officer, commented, “These positive results provide further tangible evidence that our revised strategy is appropriate given the economic environment. I am pleased to report that our financial performance is aided by a significant progress within our ‘core' activities with the Bank recording a 6% Q-on-Q uplift in Net Interest Income, whilst Operating Expenses continue to be robustly managed.
Financial Review
UAB reported a Net Profit for the six months to 30th June 2017 of AED55m, primarily driven by growth in Non-Interest Income and material reduction provision charges following a transition to a lower risk business model.
Customer Loans across the Banks ‘core' Corporate and Retail Units delivered an increase for the third consecutive quarter, whilst in parallel the ‘non-core' portfolio continued on its downward trajectory with further contraction of 33% recorded in H1 2017 and now represent 3% of the total loan base. The Bank will continue to recycle risk weighted assets released from the deleveraged ‘non-core' portfolios to support growth of ‘core' activities, whilst ensuring UAB captures all available cross-sales opportunities.
Operating Expenses for H1 2017 were AED174m, representing a 13% reduction against H2 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. In 2016 this resulted in a 24% Y-o-Y reduction with the Management Team confident that further ‘double digit' savings will be delivered in 2017 aided in part by the ongoing branch rationalization program.
Going forward the Bank remains committed to ensuring the business is supported by an efficient operating model and will continue to invest in its people, processes, systems and other critical infrastructure. Our primary objectives remain unchanged: to leverage capabilities; improve efficiencies; and eliminate non-essential expenditure.
OUTLOOK
Mr. Tamimi concluded, “Our strategy remains on track, with both the Board and Management Team remaining vigilant and ensure we continue to enhance our enterprise risk management capabilities in line with our ultimate objective to build a lower risk, more efficient and sustainable Bank.”


Posted by : GoDubai Editorial Team
Viewed 5270 times
Posted on : Monday, July 17, 2017  
Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of GoDubai.com.
Previous Story : Oman Insurance Company employees support patients in need of blood
Next Story : UAE-IAA organises series of activities during International Internal Audit Awareness Month
Email this article Print this article

Share this article with your friends and followers
NewsVine

Comments

Back to Top  
Most Viewed Press Release posted in the last 7 days
Max Mara: Iconic Coats - Manuela & Teddy.
Marina Rinaldi : Ashley Graham continues her role as the face of the brand for ...
Vintage is the rage for new Chronofighter range
SAINT HONORE Charisma “Twist” for elegant lady
LG Robots to Connect People for A Better Tomorrow
Weekend Max Mara : The Pasticcino Bag - Fall/Winter 2017
Huawei CBG supports the Middle East Innovation Agenda by bringing cutting-edge i...
Exhilarating new Roger Dubuis pop-up boutique in the US
Michael Kors Collection Spring 2018 Fashion Show
TAG Heuer's Globetrotter Exhibition Opens in Dubai Mall on September 15, As Part...
Dubai Culture Takes ‘Dubai Next' to London Design Festival
Vacheron Constantin Pays Tribute to the Middle East with Exclusive Overseas Time...
Kate Upton, Ashley Graham, Andreea Diaconu, Skai Jackson and more in Michael Kor...
Malabar Gold & Diamonds recognized as the ‘Superbrand' 5th time in a row by Supe...
New Balance Introduces the 574 Sport in Celebration of the Dubai Mall Store Opening
NMC Healthcare wins ‘Brand of the Year 2017' by Superbrands
DeLaCour Reflect Tourbillon
IPhone 8 and IPhone 8 Plus to Arrive at DU on September 23
Glittering beauty set with diamonds - a true Gilda beauty
MICHAEL Michael Kors Fall 2017 Nouveau Novelty Bags
ZENITH DEFY LAB
SOUQ.com partners with Honor to bring the beautifully brilliant Honor 9 exclusiv...
DMC partners with Marasi News to further reinforce its excellence in the market
BCG Report Reveals the Six Imperatives to Empower Women Leaders of Tomorrow in t...
Danube Properties Bags two prestigious awards this September
UAE Team Emirates La Vuelta Wrap-Up
ENEC CEO Highlights Priorities of UAE Peaceful Nuclear Energy Program at WNA Sym...
Boulevard One presents FESTIVE BOUTIQUE 2017
Introducing the GUESS Jeans Fall 2017 Advertising Campaign
QNET Celebrates 19th Anniversary At V-UAE 2017 In Dubai
Celebrate Halloween With Sass' Café's “Monday's Made Me” Haunted Dinner Party – ...
Four Strategic-level Government Agencies Move to Dubai Design District
Awqaf and Minors Affairs Foundation Inaugurates His Excellency Ahmed Ali Al Abdu...
The Academic Arrangement Between Wise Indian Academy and Bhavans
20 Leading Tech Companies to dominate the French Pavilion at GITEX 2017
Set sail for the Yas Marina Boat Festival
Middle East Arthritis Foundation Will Host Its Annual UAE Event to Support Peopl...
Hour Choice presents Scuderia Ferrari Primato Collection
The Italian Trade Agency spreads food culture through quality and authenticity a...
Introducing Malibu C and its Packets of Purity
Gourmet Gulf Raises AED 150,000 for children to ‘Make-A-Wish'
A gift of beauty for new moms and moms-to-be
Discover the World's Leading Innovative Technology Solutions at GITEX Technology...
ADNOC Distribution Completes the Second Phase of the Officers City Service Stati...
“Mohammed bin Rashid Space Centre” participates in the 68th International Astron...
Global Cashback Mart – Mashreq's newest e-commerce platform
Azure Beach opens its doors taking guests straight to the heart of the Mediterranean
Full Steam Ahead as India's F&B Market Grows 24% Per Annum: GulfHost 2017 Opens...
DeG wins Excellence Award for Arab Government Achievements
TASC Outsourcing launches TascTemp, region's first online hiring portal for temp...