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 >> Banking and Investments

 
  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 8473 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 : Abu Dhabi National Takaful's Osama Abdel-Raouf Abdeen named among GCC's Top CEOs
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
Grand Mall Opens the 52nd Outlet in Al Musallah - Sharjah
Eid- Al- Fitr Gift Guide 2018
LOOTAH Perfumes launches four new springtime fragrances for Him and Her
Leading Professional Beauty Distributor Nazih Cosmetics Celebrates the launch of...
GUESS Launches Ramadan Collection 2018
Meet the FOREO family as they share their top tips for radiant skin during the ...
Amani Glam Collection
LOOTAH Perfumes launches fragrant oud ‘Ambwood'
Experience 5 Seconds to New Skin with OXYGEN-PEEL from Filorga
Three Trends to Try with Palladio Beauty
Lip Stick to my Heart - GOSH New Collections
Swatch Introduces Its Latest Spring-summer 2018 Collection
Toyota Rush makes a new beginning in the UAE
Carrera UAE Exhibition
Lexus sweeps two podium finishes at round two of 2018 AUTOBACS SUPER GT 500 series
bebe Launches First Ever Ramadan Capsule Collection
New Master Maserati Driving Courses for 2018
Max Fashion Reveals Latest 2018 Fashion Trends at Exclusive Trunk Show
Global Light and Power Celebrates 10 Years with the Opening of their New Showroo...
Dubai's New Flagship Rolex Boutique Offers Unique Experience
Celebrate a Traditional Ramadan at the First Swissôtel in Dubai
Care for your baby's sensitive skin with Corine de Farme
Diabetes & Ramadan (DAR) Alliance and Sanofi introduce new integrated digital hu...
HydroPeptide Launches Solar Defense Products in UAE
Enhance your natural beauty while staying active with The Body Shop's Sportify M...
Hamdan Bin Mohammed Heritage Center honours winners in Fourth edition of "A...
Make Ramadan Better With the Gift of Sharing
‘Tree of Life' Continues to Change Lives at Arabian Center, This Ramadan
The Balmain de Balmain II Mini is a true win-win
Dubai Holy Quran Radio launches new special programmes for Ramadan
Spinneys Puts Local Food Heroes in the Spotlight this Ramadan
Ethereum - Second In A Series Of Exclusive Cryptocurrency Watches Launched
Beautiful Kaftans for Ramadan from GUESS
TAG Heuer Partners with Global Luxury Start-up Bootcamp in Association with Arab...
Ikea Yas Island Recognised as One of the Brand's Best Stores in the World
Ramadan-Inspired Sandro SS18 Pieces
Mads Mikkelsen Spotted on Red Carpet at Cannes Wearing Ulysse Nardin Masterpiece
Celebrate The Holy Month Of Ramadan With The Night Picnic At Tub Of Butter
Get Voluminous Eyelashes and Eyebrows with Rodial's Lash and Brow Booster Serum
LG G7 Thinq Offers Deep AI Integration for Maximum User Convenience
RAK Diabetes Center in Jumeirah offering Free Lifestyle wellness checks and Diet...
Dubai foreign trade in fragrances and beauty products worth AED 20b in 2017
Aru Impressed with Team Spirit as Italian Champion Secures Top Ten Finish
Pottery Barn Kids Launches Baby Registry Service to Welcome Newborns
Google launches new feature on Search to mark Ramadan
Dubai Customs discusses cooperation with Nedaa
Facebook Launches Youth Portal, a Central Place for Teens
OMEGA Welcomes Sailing Sensations Peter Burling and Blair Tuke as Brand Ambassadors
Charity event brings early Ramadan spirit to children of determination and their...
The Ramadan Edit 2018