ABU DHABI: United Arab Bank (UAB) has reported its financial results for the full year ending 31st December 2023, posting a net profit of AED255 million for the year 2023, compared to a net profit of AED155 million in 2022, an increase of 65 percent.
The growth in net profit results from improved operating performance and lower expected credit losses, coupled with disciplined cost management.
UAB’s financial performance was aided by significant progress across the core businesses with total operating income recording a 15 percent growth in FY 2023 as compared to FY 2022 and is expected to improve further with new portfolio underwritings in quality assets. Total assets grew 25 percent year-on-year in FY 2023 to AED17.6 billion, driven by the strong growth in loans, advances, and Islamic financing (+23 percent year-on-year) and the investment portfolio (+31 percent year-on-year).
Augmented by the Additional Tier 1 capital issuance of US$150 million during Q1 2023, the Bank maintains a solid capital adequacy
ratio of 19.0 percent and a CET1 ratio of 13.5 percent, which remain well above the regulatory requirements, supporting credit growth ahead. NPL ratio notably improved from 8.2 percent in FY2022 to 5.0 percent in FY2023.
The bank continues to focus on growing its core businesses and revenues across its Wholesale Banking, Retail Banking, and Treasury and Capital Markets segments.
The bank’s robust liquidity profile is also demonstrated by advances to a stable resources ratio of 76 percent and an eligible liquid asset ratio of 20 percent, comfortably above regulatory thresholds.
Sheikh Faisal bin Sultan bin Salem Al Qassimi, Chairman of the Board of Directors at UAB, said, ‘I am delighted to announce that we have recorded another year of remarkable growth in net profits, driven by relentless and disciplined execution of the new strategy. On behalf of the Board and the management, I would like to convey my gratitude to the UAE’s visionary leaders, our valued customers, regulators, partners, and shareholders f
or their continued support and trust in UAB.’
Shirish Bhide, CEO of UAB, emphasised the bank’s commitment to excellence, further affirmed by the significant growth in revenues and profits achieved in 2023, ‘Our customer-centric approach and prudent policies led to a 15 percent increase in revenues and a 65 percent surge in profits.’
‘UAB has significantly improved its asset quality, having more than halved the NPL ratio to 5.0 percent in 2023 from 11.6 percent just two years ago,’ he said.
‘The balance sheet was further strengthened by raising $150 million of Additional Tier 1 capital and a two-year AED735 million medium-term borrowing at market competitive rates. In addition to onboarding new clients and launching new products, UAB also saw an increase in CASA deposits and improved client connectivity,” he added.
Source: Emirates News Agency