UAB Reports Net Profit of $27.77 Million in Q1

The United Arab Bank (UAB) on Monday said that its net profit during Q1-2025 stood at $27.77 million compared with $18.51 million for the same period in 2024. The growth in net profit stems from the improved operating performance and strong recoveries leading to lower net impairment charges.

The bank’s total assets grew by 31% y-o-y during Q1 of 2025 to $6.37 billion, driven by the strong growth in loans, advances and Islamic financing (+31% y-o-y), Investments increased by (+29% y-o-y) while customer deposits increased by 40% y-o-y.

The Bank continues to maintain a solid capital adequacy ratio of 17.1% and a CET1 ratio of 12.6%, both of which remain well above the regulatory requirements, thus supporting the credit growth ahead. Gross NPL ratio notably improved further to 3.4% from 4.8% a year ago, supplemented by an adequate coverage of 118%.

Focus on Core Businesses

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 73.7% and an eligible liquid asset ratio of 18%, both comfortably above regulatory thresholds, UAB said in a disclosure with Abu Dhabi Securities Exchange (ADX) in the morning.

UAB CEO Shirish Bhide said that the bank has started 2025 on a very strong note and their first quarter results continue to reflect the sound growth strategy they have put in place and the bank was able to achieve above average growth in assets and profits, while maintaining sound levels of capital and liquidity.

They have also continued to focus on developing and providing innovative products and services that meet the growing customer aspirations in the wholesale and retail segments.

“With our recently approved plans to increase the Bank’s capital (CET1) through a Rights Issue of up to $280 million, UAB can now continue to confidently execute the medium-term strategy of generating sustainable growth and shareholder value,” he added.