Dubai: United Arab Bank (UAB) reported a net profit of Dh36 million for the first quarter of 2018, up 29 per cent year on year, supported by improved core business, streamlined cost base and strong fundamentals.
Growth in profits was driven largely by growth in net interest income and reduction in provision charges following a transition to a lower risk business model, the company said in a statement on Wednesday.
Total income was Dh174 million in the first quarter 2018 up 8 per cent compared to the fourth quarter of 2017 given the strategic emphasis placed on deepening relationships within core corporate banking unit and supported by proactive cost of funds management.
“We have significantly strengthened the balance sheet, concentrated on our core businesses, de-risked the business and captured bank-wide cost savings through the successful execution of our transformation strategy, all of which have enabled the bank to report a 29 per cent uplift in net profit,” said Shaikh Faisal Bin Sultan Bin Salem Al Qasimi, Chairman of the Board of Directors.
The first quarter 2018 results, the bank said, provide tangible evidence that the revised business model is appropriate with UAB returning to its traditional corporate banking roots, complimented by retail and treasury propositions.
“Our financial performance is aided by a significant progress within our ‘core’ businesses recording a 13 per cent quarter on quarter uplift in net interest income and 8 per cent quarter on quarter uplift in total income, whilst operating expenses continue to be robustly managed,” said Shaikh Mohamed Bin Abdullah Al Nuaimi, Acting Chief Executive Officer.
Provision for credit losses for the three months were at Dh54 million, lower by 4 per cent compared to same period last year. Capital adequacy was above 15 per cent following the successful completion of rights issue and the bank continues to maintain robust liquidity profile above regulatory requirements.
