UAB Q3 profit Dh88m, outlook remains strong

Non-core portfolio down to 7% of loan book, deleveraging to continue

United Arab Bank (UAB) has reported Dh88 million net profit for the third quarter ended September 30, 2016.

The performance in the third quarter reflects continued positive traction against the bank’s transformation strategy and a substantial 44 per cent reduction in provisions for credit losses, stable non-interest income and material cost savings from its streamlined operating model.

“The bank continues to progress well against its strategy. The board and management team are committed to a clear approach: we set our priorities, we commit to our targets; and then we deliver,” said Shaikh Faisal Bin Sultan Bin Salem Al Qasimi, Chairman of the Board of Directors.

The bank’s total income was Dh211 million in the third quarter 2016 as the bank continues to deleverage its higher risk, albeit higher yielding non-core portfolios, offset by proactive cost of funds management.

Continued progress

The bank said it continues to generate solid performance across net fees and commissions and other operating income with non-interest income up 42 per cent compared to the third quarter of 2015. Operating expenses for the quarter were Dh90 million, 18 per cent down against the same three month period in 2015. “The picture in the third quarter is one of strong and accelerating progress against our transformation plan,” said Samer Tamimi, Acting Chief Executive Officer.