UAB’s Net Profit rises 49% YoY to AED 102 Million

A strong start to 2025

28 April 2025: United Arab Bank (UAB) recorded a growth of 49% year-on-year in net profits to AED 102 million for the quarter ended 31 March 2025, driven by improved operating performance and strong recoveries leading to lower net impairment charges. This is the highest quarterly profit recorded in the last decade demonstrating the relentless and diligent execution of the Bank’s strategy.

KEY HIGHLIGHTS (Q1 2025)

• Net profit reported at AED 102 million for Q1 2025, up by 49% year-on-year (yoy) as compared to AED 68 million for Q1 2024, and up 15% sequentially (vs Q4 2024). This resulted in an EPS of AED 0.05 per share for Q1 2025 compared to AED 0.03 per share in the prior year comparative period.
• Total income was higher by 1% yoy to AED 165 million, led by higher non-interest income, offsetting the decline in net interest income.
• The Bank continues to benefit from the persistent recovery efforts in a challenging macroeconomic environment, with net reversal in impairment charges of AED 34 million in Q1 2025 as compared to net impairment charges of AED 11 million in Q1 2024.
• Return on shareholders’ equity (RoSE) improved to 20.0% for Q1 2025.
• Total assets increased by 31% yoy to AED 23.4 billion at end-March 2025, led by similar growth in loans, advances and Islamic financing and investments of 31% yoy and 29% yoy, respectively, while customer deposits increased by 40% yoy.
• Asset quality metrics improved further with Gross NPL ratio declining to 3.4% with adequate coverage maintained at 118%.
• Advances to stable resources ratio (ASRR) at 74% and eligible liquid asset ratio (ELAR) at 18%, both, remain comfortably above regulatory thresholds.
• Capital position remains robust with CET1 of 12.6% and total capital adequacy ratio (CAR) at 17.1%.
• During the quarter, Fitch upgraded the Bank’s viability rating to ‘bb-’ from ‘b+’ and reaffirmed its long-term issuer ratings at ‘BBB+’ with a stable outlook. Ratings from Moody’s (Baa3/Positive) and Capital Intelligence (BBB+/Stable) remain intact.