20 October 2024: United Arab Bank’s (UAB) financial results for the first nine months of 2024 continue to affirm the diligent execution of the bank’s strategy driven on the back of a competitive, yet positive operating environment and relentless focus on delivering best-in-class customer service. The Bank continues to prioritize growth across all target segments aligned with its strategy, embedding prudent risk management practices and disciplined cost management to deliver sustainable growth.

KEY HIGHLIGHTS (9M 2024)

• Net profit (before taxes) reported at AED 233 million for 9M 2024, up by 12% yoy as compared to AED 209 million for 9M 2023. Profit after taxes at AED 212 million were higher by 2% yoy.
• Net profit before taxes for Q3 2024 were AED 81 million, up by 5% sequentially.
• Net interest income increased by 20% yoy to AED 354 million for 9M 2024 compared to AED 295 million for 9M 2023 leading to higher total income of AED 452 million, up by 1% yoy.
• Strong recoveries led to a net reversal in impairment charges of AED 5 million for 9M 2024 as compared to net impairment charges of AED 27 million in 9M 2023.
• Annualised return on shareholders’ equity (RoSE) was 15.1% in 9M 2024.
• Total assets were AED 20.0 billion at end-September 2024, up 13% ytd led by growth in loans, advances and Islamic financing of 15% ytd.
• Asset quality metrics improved further with NPL ratio declining to 4.1% with an adequate provision coverage maintained at 125%.
• Healthy liquidity and funding profile with advances to stable resources ratio (ASRR) at 74% and eligible liquid asset ratio (ELAR) at 15%, both comfortably above regulatory thresholds.
• Capital position remains robust with CET1 of 13.8% and total capital adequacy ratio (CAR) at 18.8%.
• UAB’s credit rating was upgraded by Moody’s to investment grade (Baa3/P-3), with the outlook remaining on 'Positive'.