Sharjah-based United Arab Bank yesterday reported a 4.5 per cent drop in second-quarter net profit, as provisions against credit losses soared.
UAB's net profit fell to Dh71.94 million from Dh75.32 million in the same period in 2010, according to a statement on the Abu Dhabi stock exchange where the bank is listed.
The bank's second-quarter revenues rose due to stronger income from interest and fees but a spike in provisions dented profitability.
UAB booked Dh15.58 million in provisions against credit losses, compared to Dh0.8 million in the same period last year. The bank's chief executive Paul Trowbridge said in June that banks in the UAE face another tough year as they continue to deleverage and the region's property sector shows few signs of recovery.
"The bank will continue its cautious approach to lending and maintaining its good asset quality alongside its plans to expand business in the retail, corporate and Islamic banking sectors to achieve its objectives," according to deputy chief Awni Alami in a statement.
From / Gulf News