SHARJAH, (Pakistan Point News - 01st May, 2019) United Arab Bank, UAB, has announced its financial results for the three months ending 31st March 2019. UAB reported a net profit of AED22 million in Q1 2019 supported by an increase in interest income of six percent and an uplift in non-interest income of three percent compared to Q1 2018.
The bank has reported three percent lower operating expenses and a reduction in provisions for credit losses by nine percent, compared to the prior year which provides further evidence that the Bank is well placed to set sail on its growth journey.
Sheikh Faisal bin Sultan Al Qasimi, Chairman of the Board of Directors of UAB, said, "The bank had a good start to the year, with a solid underlying performance for the first three months of 2019. The board and I are optimistic about the bank’s future, we are confident that the bank will contribute in developing its operations and improving the quality of its offerings, which help to provide convenience for its customers, and generate sustainable returns to our shareholders."
Total income recorded AED152 million supported by an increase in Interest Income of six percent in Q1 2019, compared to the same period in 2018 as well as an increase in non-interest income of three percent compared to the prior year.
The bank’s liquidity profile remains strong as evidenced by a robust Loan to Deposit Ratio of 90 percent. Customer Deposits (being 78 percent of total liabilities) have and will continue to represent the bank’s key source of funds.
UAB has continued to record significant progress in deleveraging its ‘non-core’ higher risk portfolios as they have been managed down to one percent of Total Loans at the end of Q1 2019. Its Provisions for credit losses of AED49 million represent a healthy reduction of nine percent, compared to Q1 2018 supported by prudent risk management and focused reduction in risk weighted assets. Going forward, UAB’s transition to a lower risk model should see these moderate further in the medium term.
