News Column

United Arab Bank's records high net profits

January 23, 2014

UAB has announced full year 2013 Net Profits of AED 552 million, an exceptional increase of 35 per cent over 2012. This impressive performance represents the highest ever annual Net Profits for the bank, again emphasizing the continuing success and momentum UAB has generated in recent years. A cash dividend of 20 per cent of paid up capital amounting to AED 199.3 million and a scrip dividend of 10 per cent of paid up capital amounting to AED 99.6 million are proposed by the directors for approval by the Bank's shareholders, subject to the prior approval of the Central Bank . The Bank's Chairman of the Board of Directors, Sheikh Faisal Bin Sultan Bin Salem Al Qassimi , commented: "UAB's record full year net profits and performance are testament to the bank's ability to build on the momentum of past years, achieve continued growth and generate value for our shareholders. The bank's sustained growth and strong traction in a highly competitive market can be attributed to the dynamic strategy and effective leadership that is focused on delivering to all stakeholders." Paul Trowbridge , the bank's Chief Executive Officer, said of the year's results, "I am very pleased with our 2013 results. This strong finish to an amazing year is a clear demonstration of the consistency and discipline in the execution of our strategy. Backed by strong fundamentals and the commitment of our management team in an improving economic landscape, the bank was successful in growing the loan book and customer deposits significantly. We continue to reap the benefits of our strategic alliance with Commercial Bank of Qatar . Our associations with National Bank of Oman and Alternatifbank in Turkey have positioned us well for future growth and created opportunities for integrated services across the GCC and Turkey ." In the twelve months ended 31 December 2013 , Customer Loans & Advances increased by 40 per cent to AED 15.29 billion, from AED 10.88 billion as at 31 December 2012 ; while Customer Deposits recorded equally impressive growth to reach AED 15.03 billion, surging 49 per cent in the same period. This growth ensures the bank will continue to benefit from a solid and sustainable platform to support future expansion plans moving forward. The bank recorded Operating Profit of AED 721 million, a 36 per cent increase over profits of AED 531 million reported in 2012. Total Income also improved at the same rate to AED 1.04 billion, with robust underlying performance across both Net Interest Income and Other Income, up 39 per cent and 26 per cent respectively versus prior year. Provision charges across the full year were AED 168 million, compared to AED 122 million for the same period in 2012. The bank continues to take a prudent and proactive approach to risk management, with the loan loss coverage ratio standing at 117 per cent and in full compliance with UAE Central Bank regulations.

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Source: CPI Financial

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