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Financial Results Q3 2017

Q3 2017 Highlights

  • AED50m Net Profit
  • Operating Expenses decreased 9% vs. Q3 2016
  • Provision for Credit Losses decreased 37% vs. Q3 2016
  • Robust liquidity profile with UAB comfortably above regulatory requirements
  • Loan : Deposit Ratio managed to 90%
  • Capital Adequacy stable at 13%
  • ‘Non-Core’ portfolio managed down to 2% of Total Loans

Sharjah, UAE, 16 October 2017 -United Arab Bank P.J.S.C ("UAB" or “the Bank”) announces its Financial Results for the nine months ended 30 th September 2017.

The performance in the third quarter reflects continued positive traction against the Bank’s Transformation Strategy set out in H2 2015 to become a safer, stronger and sustainable Bank. Solid performance is evidenced across the period with the Bank reporting a Net Profit of AED50m, with UAB continuing to: strengthen its core businesses; run-down ‘non-core’ higher risk portfolios; streamline the cost base; and maintain key banking fundamentals.

Sheikh Faisal Bin Sultan Bin Salem Al Qassimi, Chairman of the Board of Directors, said,“The Board is pleased to see the improved operating performance continue into the third quarter of 2017 as the Bank continues to progress well against its strategy.

We believe that our revised low risk and UAE focused business model, together with the simplification and transformation of the Bank, positions us well to continue doing the right thing for our customers and deliver sustainable returns for our shareholders.”

Samer Tamimi, Acting Chief Executive Officer, commented, “We have seen another period of good financial and operating performance in Q3 2017 with the Bank reporting an underlying Net Profit of AED50m.

With the transformation strategy nearing completion since it started in H2 2015, non-core assets now represent 2% of the loan base. The benefits of branch rationalization have resulted in operating expenses being robustly managed recording 9% reduction against prior year. These positive results provide further tangible evidence that our revised strategy is appropriate given the economic environment.”

Financial Review

UAB reported a Net Profit for the nine months to 30 th September 2017 of AED50m, primarily driven by growth in Non-Interest Income and reduction in provision charges following a transition to a lower risk business model.

‘Non-core’ portfolio continued on its downward trajectory with further contraction of more than 50% recorded in Q3 2017 and now represent 2% of the total loan base. The Bank will continue to recycle risk weighted assets released from the deleveraged ‘non-core’ portfolios to support growth of ‘core’ activities, whilst ensuring UAB captures all available cross-sales opportunities.

Provision for Credit Losses for the nine months were AED210m, 37% lower than the same period in 2016, given prudent risk management and focused reduction in risk weighted assets. Going forward, although provisions have decreased significantly, UAB’s transition to a lower risk model should see these moderate further in the coming years.

Operating Expenses for the quarter were AED82m, representing a 9% reduction against Q3 2016 as the Bank continues to capture the benefits of the comprehensive review and subsequent overhaul of its cost base completed as part of the wider transformation strategy.

Going forward the Bank remains committed to ensuring the business is supported by an efficient operating model and will continue to invest in its people, processes, systems and other critical infrastructure. Our primary objectives remain unchanged: to leverage capabilities; improve efficiencies; and eliminate non- essential expenditure.


Mr. Tamimi concluded, “Our strategy remains on track, with both the Board and Management Team remaining vigilant and ensure we continue to enhance our enterprise risk management capabilities in line with our ultimate objective to build a lower risk, more efficient and sustainable Bank.”

To view more UAB news, please click here.

For further information, please contact:

United Arab Bank
Corporate Communications
+971 6 5075222


You can reach us using any of the following numbers

UAB Toll Free

800 474

International callers

+971 6 5987332

Sadara Toll Free

800 72 32 72

Sadara international

+971 6 5987333

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