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 8272 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
100% Vegan New… Body Yogurts 15 Seconds to Glowing Healthy-looking Skin Spoon It on
Therése Neaimé- Sold to perfection
Linda Paradis brings non-invasive ink removal to Dubai
Timeless Ties
Sony's PXW-Z280, World's first 4K 3-chip Camcorder with new 1/2-type Exmor R CMO...
Martin Hoping for Amstel Gold as Irishman Leads Team to Ardennes Classics
Tommy Hilfiger's SS2018 men's and women's watch collection
COLAB - Dry Shampoo
ORANGE & BERGAMOT Awaken the Cult Icon New Additions
Accessories Collection 2018 Gentleman Attitude
Al-futtaim Names Its New Dubai Lifestyle Mall – ‘Festival Plaza'
Skyline Mega Fitness Challenge Sparked Positivity and Happiness
FOREO delivers the ultimate festival survival kit for a glow-on-the-go.
Samsung launches Exciting Smartphone Trade-In Program with Galaxy S9 or S9+
Summertime Beauty Picks at Glambeaute.com
Enhance skin radiance, smoothness and brightness in just 14 days, with the new J...
Get the best bargains at Dragon Mart's End of Season Clearance Market
Dubai Sports Council Pavilion a big hit at Bangkok SportAccord
Dubai-based Al Kasir Group launches three Crypto assets backed by diamonds
Skyline University College Economics Day 2018: One Step towards Tomorrow
Get Vibrant and lively hair with Rahua's new Color Full Range
A Royal Ramadan Experience by Master Chef Mama in Pullman Dubai Creek City Centre
New XE 300 Sport Edition Wins Gripping Ice Race
New Blow Out Bar and Make-Up Studio SWISH by Immaclife Opens in Abu Dhabi in Apr...
Filorga Mesotherapist Derma Roller
Rolling Cones, a new luxury ice cream concept, launches at the Hyatt Regency Dub...
The Perfect Gift Mark
du to Offer New 9.7-inch iPad With Apple Pencil Support
Finnair to offer a hand baggage only ticket type on selected North Atlantic routes
Abu Dhabi Ship Building Company Launches Two 64-Meter Landing Ships for the Kuwa...
Penny Scallan Design Launches in the Middle East
Mumzworld Announce Recruitment Drive To Empower Women in the Middle East
Sheikh Sultan bin Ahmed Al Qasimi Leads Sharjah Contingent to Kuwait Arab Media Forum
MINI at Auto China Beijing 2018
The new BMW M2 Competition
Genesis G70 Luxury Sedan Arrives in Middle East
10 Kg gold for 100 winners at Malabar Gold & Diamonds
Exclusive, Limited‐Edition, Swiss‐Made Cryptocurrency Watches
Olivia Burton Marble Florals - Embrace these styles for a new artistic way to wo...
Toshiba Releases New, Powerful Surveillance and Video Streaming Internal Consume...
Pandora Shine Discover A New Way to Shine
Lingual Orthodontic Treatment now a reality at Al Mariffa Medical Center
Qualcomm Unveils the Vision Intelligence Platform Purpose-built for IoT Devices ...
Understanding what women want Balmain reveals the Madrigal Mini II
Munich Airport reports record net annual profit of €155 million for 2017
Adamavi - Elegant, Timeles S, and Reliable
Stylish Nursing wear at Mums and Bumps
Airport Show Attracts Influential Aviation Leaders for Global Airport Leaders Fo...
Pandora Spring Embrace Nature's Beauty
Village Street Sale at The Outlet Village offers designer outfits at great prices