August 2021: UAB Reports Net profit of AED 27m for H1 2021

Sharjah, UAE, 10^th August 2021 - United Arab Bank P.J.S.C ("UAB" or "the Bank") announces its Financial Results for the six months ended 30th June 2021.

UAB posted a Net Profit of AED 27 million for the first half of 2021 compared to a net loss of AED 208 million in the first half of 2020 representing a quarter-on-quarter increase of 64%. The growth in net profit is a result of improved operating performance and lower expected credit losses, coupled with disciplined cost control and a prudent approach to risk management.

UAB’s financial performance was aided by a significant progress within the ‘core’ businesses recording a 33% increase in Operating Profit compared to first half of 2020. Total Income increased by 8%, whilst Operating Expenses continue to be robustly managed and recorded a reduction of 9% comparing to same period in 2020. The Balance Sheet has been significantly strengthened with a focus on quality assets which resulted in recording 70% reduction in Provisions compared to the first half of 2020. These results provide further evidence that the Bank is well positioned to set sail on its growth journey.

Ahmad Abu Eideh, Chief Executive Officer of "United Arab Bank", commented: "The investment that the bank started in developing and modernizing the technological infrastructure and hence moving forward towards the digital world and the successful execution of the turnaround strategy paved the way for a return to profitability. We are confidently looking forward to the future and continuously developing and improving our business model and activities in line with our customer base and sustainable growth strategy".

"These positive results do also motivate us to work harder towards ensuring the satisfaction of our customers and shareholders. In the coming period, we will pursue our ambitious vision and accelerate the pace of investment in digital transformation to effectively manage our resources and reduce risk, thereby enhancing our net profit and our customers' confidence in the quality of our assets and services." Abu Eideh concluded.

H1 2021 Key Highlights:

• YTD June’21 recorded a Net Profit of AED 27m representing a Q-o-Q increase of 64% and compared to a net loss of AED 208m in H1 2020
• Income improved by 8% as compared to previous year
• Operating Costs reduced by 9% as compared to previous year
• Provisions for Credit Losses decreased by 70% vs. YTD June’20
• Solid liquidity profile with UAB comfortably above regulatory requirements
• Capital remains well above regulatory requirements with CET1 ratio at 12.3% and CAR at 13.4%
• Loans : Deposits ratio managed down to 76%

For more information, please download the PDF here.

To know more about UAB, please visit www.uab.ae

For further information, please contact:

Sirine El Merhebi

Corporate Communications Department

Direct Line: +971 6 507 5415

Sirine.elmerhebi@uab.ae