UAB’s Net Profit (before tax) rises 30% YoY to AED 331 Million

Turnaround strategy delivers 3-year CAGR of 68% in Net Profit (before tax)

4 February 2025: United Arab Bank (UAB) recorded net profit (after tax) exceeding AED 300 million, highest since 2014, for the financial year ended 31 December 2024, driven by strong business momentum, prudent risk management and diligent execution on our turnaround strategy.

KEY HIGHLIGHTS (FY 2024)

• Net profit (before tax) reported at AED 331 million for FY 2024, up by 30% yoy as compared to AED 255 million for FY 2023. Net profit (after tax) at AED 301 million also increased by 18% yoy.
• Net profit (before tax) for Q4 2024 were AED 98 million, up by 20% sequentially and 111% yoy.
• Net interest income increased by 18% yoy to AED 467 million for FY 2024 compared to AED 395 million for FY 2023 leading to higher total income of AED 606 million, up by 5% yoy.
• Recovery efforts throughout 2024 led to a net reversal in impairment charges of AED 43 million for the year as compared to net impairment charges of AED 36 million in the prior year period.
• Return on shareholders’ equity (RoSE) was 16.1% in FY 2024.
• Total assets increased by 22% yoy to AED 21.5 billion at end-December 2024, led by growth in loans, advances and Islamic financing of 23% yoy, while customer deposits increased by 33% yoy.
• Healthy asset quality metrics with Gross NPL ratio declining to 3.9% with adequate coverage of 118%.
• Advances to stable resources ratio (ASRR) at 76% and eligible liquid asset ratio (ELAR) at 17%, both, remain comfortably above regulatory thresholds.
• Capital position remains robust with CET1 of 12.7% and total capital adequacy ratio (CAR) at 17.4%.
• UAB has investment grade ratings from both, Fitch (BBB+) and Moody’s (Baa3), after being upgraded by the latter in September 2024, with the outlook maintained on ‘Positive’.