Operating income down 9% to AED672m
NPL ratio increases to 3.9%
Nine month profit down 86% to AED72m due to extensive additional provisioning
Capital adequacy ratio 14.4% as at 30 September 2015
October 14 2015, Sharjah, UAE: United Arab Bank P.J.S.C ("UAB" or "the Bank") announces its Financial Results for the nine months ended 30 September 2015.UAB reported a Net Profit of AED72m for the first nine months of 2015, compared to AED498m for the same period of 2014. Net profit was impacted by provisioning taken during the quarter of AED466m following a significant increase in loan defaults in UAB’s higher risk commercial loan portfolio.
Sheikh Faisal Bin Sultan Bin Salem Al Qassimi, Chairman of the Board of Directors, said, “The Board has mandated Management to take an uncompromising view on asset quality and to set aside a significant provision this quarter against the rise of defaults in some of UAB’s riskier assets. We have taken this decisive action to ensure that UAB is in the strongest position to pursue its strategy and support the UAE economy.”
Mr Paul Trowbridge, Chief Executive Officer commented, “We will be deleveraging from some of our higher risk assets over the course of the final quarter; we will continue to improve liquidity and continue to enhance our risk management.
“UAB remains well capitalized, with its Capital Adequacy Ratio at 14.4%, comfortably above the Central Bank’s capital requirements of 12%. Although our NPL ratio stood at 3.9% as at 30 September 2015, our NPL coverage ratio was 130%, giving UAB significant risk protection.
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