The Gulf Time Newspaper One of the finest business newspapers in the UAE brought to you by our professional writers and editors.
Sharjah / WAM
United Arab Bank PJSC (UAB) released its financial results for the year ending December 31, 2022, reporting a net profit of AED155 million. This represents a 120% increase from the AED70 million net profit recorded in 2021, driven by improved operating performance and lower expected credit losses, alongside disciplined cost control.
UAB’s core businesses have made significant progress, with total operating income growing by 11% in FY 2022 compared to FY 2021.
Operating profit of the bank also improved by 21% in 2022 compared to 2021. Provision charges reduced by 31% in 2022 compared to 2021, and the bank maintained adequate levels of capital.
with a capital adequacy ratio of 14.5% and a CET1 ratio of 13.4%, both of which are well above regulatory requirements.
UAB’s NPL ratio improved from 11.6% in FY 2021 to 8.2% in FY 2022, and earnings per share improved to eight fils per share compared to three fils per share in FY 2021.
The bank remains committed to growing its core businesses and revenues across its wholesale banking, retail banking, and financial markets, while also investing in digital solutions and capabilities to create a more agile operating model. UAB is focused on positioning itself as the partner of choice among major corporate clientele segments.
UAB’s liquidity profile is robust, with an Advances to Stable Resources Ratio (ASRR) of 87 percent and an eligible liquid asset ratio of 18 percent, both comfortably above regulatory thresholds.
Sheikh Faisal bin Sultan bin Salem Al Qassimi, Chairman of the Board of Directors, UAB, said, “We are pleased with the financial performance of the bank for the year 2022. The Bank is moving ahead according to a well-thought-out strategy that supports growth and shareholders’ expectations. Backed by the strong economy in the UAE, we are confidently looking forward to the future and continuously developing our efficient business model and activities in line with our sustainable growth strategy.”
Shirish Bhide, Chief Executive Officer of United Arab Bank, commented, “The growth in the Bank’s net profit indicates a strong performance in all aspects of the bank’s businesses and proves that we are on track to achieve our strategic and financial objectives. Our focus will remain on the delivery of an enhanced customer experience and continued investment in digitisation programmes.”
Bhide added, “We are confident we can deliver our strategy, building on the significant progress we made over the past year and the positive business environment. We will continue to invest in developing the bank’s digital platforms to increase competitiveness and create a more efficient, resilient, and seamless service at a pace that suits our customers’ expectations.”