UAB Reports Net Profit of $90.12 Million in FY24
The UAE-based United Arab Bank (UAB) said it has posted a net profit (before tax) of $90.12 million for the year 2024, compared with $69.43 million the previous year representing an increase of 30%.
The growth in net profit stems from the improved operating performance and strong recoveries leading to lower net impairment charges, UIAB said in a regulatory filing with Abu Dhabi Securities Exchange on Tuesday evening.
Operating income in FY 2024 increased to $164.99 million, up 5% y-o-y and is expected to remain robust with new portfolio underwritings in quality assets.
Total assets grew by 22% y-o-y in FY 2024 to $5.85 billion, driven by the strong growth in loans, advances and Islamic financing (+23% yoy), while customer deposits increased by 33% y-o-y.
The bank continues to maintain a solid capital adequacy ratio of 17.4% and a CET1 ratio of 12.7%, both of which remain well above the regulatory requirements, thus supporting the credit growth ahead. Gross NPL ratio notably improved further to 3.9% from 5% a year ago, supplemented by an adequate coverage of 118%.
The bank continues to focus on growing its core businesses and revenues across its wholesale banking, retail banking and treasury & capital Markets segments, whilst moving towards a more agile operating model offering digital solutions and capabilities, thereby positioning itself as the partner of choice among major clientele.
The bank’s robust liquidity profile is also demonstrated by an advances to stable resources ratio of 76% and an eligible liquid asset ratio of 17%, both comfortably above regulatory thresholds.
Success of Growth Strategy
UAB Chairman Sheikh Mohammed bin Faisal bin Sultan Al Qassimi said that the bank’s strong performance is a testament to the success of their growth strategy, resilience in its core business, and reinforced their unwavering commitment to delivering long-term value to our shareholders.
He said that their relentless focus on digitisation and transformative innovation is reshaping the future of banking, enhancing digital capabilities and operational excellence, and driving continuous progress in efficiency and customer value.
He added: “As we move forward, we are fully committed to elevating our customers’ banking experience and playing a pivotal role in the continued growth and prosperity of the UAE’s economy extend my sincere gratitude to the Board of Directors, senior management, and all our employees for their unwavering dedication and exceptional performance which have been driving our success.”
UAB’s CEO Shirish Bhide said the bank’s achievements in 2024 reflected the remarkable progress made over the past three years, driven by our customer-centric approach and the successful execution of our sustainable growth model.
He said that the bank’s strategy and effective operational management have been pivotal in achieving growth across all businesses. Additionally, the upgrade of UAB’s deposit ratings to ‘Baa3’ with a continued ‘Positive’ outlook by Moody’s is a testament to UAB’s sound financial management and tireless efforts towards strengthening the bank’s financial position.
He added: “As we continue to navigate forward, we remain fully committed to delivering sustainable value to our customers, shareholders, and the community we serve.”
