United Arab Bank (UAB) announced its financial results on Wednesday for the nine months ended Sept.30, 2012.
One of the UAE’s fastest-growing banks announced a record net profit of Dhs298 million for the nine months, which is an increase of 32 per cent over the same period of 2011 and the highest net profit ever for UAB in the first nine months of the year.
Paul Trowbridge, the Bank’s CEO, commented on the year-to-date performance, “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,” he added
In the nine months ended Sept.30, 2012, customer loans and advances increased by 24 per cent to Dhs10.0 billion from Dhs8.1 billion at Dec.31, 2011. Customer deposits also increased by 11 per cent to Dhs8.7 billion compared with Dhs7.8 billion for the same period in 2011.
The Bank has delivered a year-to-date operating profit of Dhs382 million, a 36 per cent increase over Dhs281 million achieved for the same period in 2011. Total operating income was up 33 per cent to Dhs551 million, driven by a 34 per cent increase in net interest income to Dhs407 million and 30 per cent growth in non-interest income to Dhs145 million, attributable to the growth in both corporate and retail businesses.
The provision charge for the nine months of 2012 was Dhs85 million, compared with Dhs57 million for the same period in 2011, and reflects the prudent and proactive approach adopted by the Bank towards management of its risk and growing asset portfolio.
A number of new branches are also targeted for launch in 2012, which will significantly expand the Bank’s presence in Abu Dhabi and the Northern Emirates. Investment in the future continues with the success of the new SME business segment and the launch of the new “Ultimate Rewards Programme”, which is a first of its kind in the UAE.