UAB profits jump 35% to Dh552m
United Arab Bank (UAB) today, January 22, announced 2013 net profit of Dh552 million, an increase of 35 per cent over 2012.
Its board proposed cash dividend of 20 per cent of paid-up capital amounting to Dh199.3m and a share dividend of 10 per cent of paid-up capital amounting to Dh99.6m.
The Bank's Chairman of the Board of Directors, Sheikh Faisal Bin Sultan Bin Salem Al Qassimi, said : "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: "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.”
Customer loans and advances increased by 40 per cent to Dh15.29bn, from Dh10.88bn as at 31 December 2012; while customer deposits recorded equally impressive growth to reach Dh15.03bn, 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 Dh721m, a 36 per cent increase over profits of Dh531m reported in 2012. Total income also improved at the same rate to Dh1.04bn, 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 Dh168m, compared to Dh122m 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.
Even after its impressive performance in recent years, the bank is relentlessly striving to build upon its fundamentals to support further growth. UAB’s successful network expansion programme continued in 2013, with the bank now benefiting from 25 fully operational branches across the UAE. Going forward UAB will continue to invest in its people and infrastructure to ensure it remains the bank of choice for its customers.
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