United Arab Bank posts 65% growth in 2023 net profits

United Arab Bank posts 65% growth in 2023 net profits

United Arab Bank (UAB) on Thursday posted a net profit of Dh255 million for the financial year 2023 compared to a net profit of Dh155 million in 2022, representing an increase of 65 per cent.

In a statement, the bank said growth in net profit is a result of improved operating performance and lower expected credit losses, coupled with disciplined cost management.

UAB’s financial performance was aided by significant progress across the core businesses with total operating income recording a 15 per cent growth in financial year 2023 as compared to 2022 and are expected to improve further with new portfolio underwritings in quality assets.

Total assets grew 25 per cent year-on-year basis last year to Dh17.6 billion, driven by the strong growth in loans, advances and Islamic financing (+23 per cent year-on-year basis), as well as in the investments portfolio (+31 per cent year-on-year basis).

Augmented by the Additional Tier 1 capital issuance of $150 million during the first quarter of 2023, the bank continues to maintain a solid capital adequacy ratio of 19 per cent and a CET1 ratio of 13.5 per cent, both of which remain well above the regulatory requirements, and supporting credit growth ahead. NPL ratio notably improved from 8.2 per cent in fiscal year 2022 to five per cent in 2023.