United Arab Bank incurs Dh166m loss in 2015

United Arab Bank's total income fell by 12 per cent to Dh1.213 billion last year while operating expenses amounted to Dh491 million. United Arab Bank on Tuesday said it incurred a Dh166 million net loss in 2015 due to negative effects of a slowing economy.

The Sharjah-based lender said its total income fell by 12 per cent to Dh1.213 billion last year while operating expenses amounted to Dh491 million. Consequently, the bank's cost-toincome ratio increased to 40.5 per cent last year as against 28.7 per cent in 2014 chiefly due to one-off restructuring initiatives to streamline its ongoing cost base. Samer Tamimi, acting CEO of UAB, said the bank's financial results were materially affected by the significant impact of provisions taken in the second half of 2015 following defaults predominantly in the SME segment.

"To improve financial stability, our first course of action was to deleverage from these higherrisk portfolios, with significant efforts from our reinforced credit remedial unit. I am satisfied with the swift progress the team has achieved during the fourth quarter, with fourth-quarter provisions reducing by 38pc when compared to third quarter.