Today's Edition
ABU DHABI (ALETIHAD)
United Arab Bank (UAB) reported a strong start to 2025, delivering a 49% year-on-year (YoY) growth in net profit for the first quarter.
The bank recorded a net profit of Dh102 million for Q1 2025, compared to Dh68 million in the same period last year, driven by improved operating performance and strong recoveries leading to lower net impairment charges.
Total assets grew 31% YoY to Dh23.4 billion, supported by an 31% increase in loans, advances, and Islamic financing, and a 29% rise in investments. Customer deposits also surged 40% YoY, underscoring robust business momentum.
UAB maintained a strong capital position, with a Common Equity Tier 1 (CET1) ratio of 12.6% and a total capital adequacy ratio of 17.1%, both comfortably above regulatory thresholds. The bank’s gross non-performing loan (NPL) ratio improved to 3.4% from 4.8% a year earlier, with a coverage ratio of 118%.
The bank’s liquidity profile also remained solid, evidenced by an advances-to-stable-resources ratio of 73.7% and an eligible liquid asset ratio of 18.0%.
Shirish Bhide, Chief Executive Officer of United Arab Bank, commented: “UAB has started 2025 on a very strong note and our first quarter results continue to reflect the sound growth strategy we have put in place. We have been able to achieve above average growth in assets and profits, while maintaining sound levels of capital and liquidity.
"With our recently approved plans to increase the Bank's capital (CET1) through a Rights Issue of up to Dh1.032 billion, we can now continue to confidently execute our medium-term strategy of generating sustainable growth and shareholder value.”
UAB, established in 1975 in the emirate of Sharjah, offers a comprehensive range of wholesale, retail, treasury, and Shariah-compliant banking services and is listed on the Abu Dhabi Securities Exchange (ADX).
