UAB profit rises 32% to Dh298m

United Arab Bank (UAB) on Wednesday said its net profit in the first nine months of 2012 increased 32 per cent to Dh298 million.

Paul Trowbridge, Chief Executive Officer, said: “The Bank’s outstanding performance in the first half of the year has successfully continued into the third quarter delivering a record profit over the nine month period. The Bank continues to grow and deliver excellent financial results whilst not compromising on its prudent approach to credit or value to its customers. Our strategic growth plans remain embedded in the way we conduct our business and successfully translates into providing value to our traditional customers, whilst also reaching new customers through our expanded branch network, new SME business segment and product offerings. The benefits of our regional “best practice” partnership and Shareholder alliance with the Commercial Bank of Qatar are clearly evident.”

In the nine months ended September 30, 2012, customer loans and advances increased 24 per cent to Dh10 billion from Dh8.1 billion at 31 December 2011.  Customer deposits also increased by 11 per cent to Dh8.7 billion compared with Dh7.8 billion for the same period in 2011.

The Bank has delivered a year-to-date operating profit of Dh382 million, a 36 per cent increase over Dh281 million achieved for the same period in 2011.  Total operating income was up 33 per cent to Dh551 million, driven by a 34 per cent increase in net interest income to Dh407 million and 30 per cent growth in non-interest income to Dh145 million, attributable to the growth in both Corporate and Retail businesses.

The provision charge for the nine months of 2012 was Dh85 million, compared with Dh57 million for the same period in 2011.