United Arab Bank reports AED 54.8 million net profit in Q1 2023

United Arab Bank reports AED 54.8 million net profit in Q1 2023

SHARJAH, 18th April, 2023 (WAM) -- United Arab Bank (UAB) has reported its financial results for the first quarter ending March 31, 2023, with a net profit of AED 54.8 million, up 80 percent from AED 30.4 million in Q1 2022.

The increase in net profit is attributed to improved Net Interest Income and lower provision charges.

The bank's total operating income grew 5 percent in Q1 2023, compared to Q1 2022, due to a 38 percent increase in Net Interest Income. Provision charges have significantly reduced by 91 percent in Q1 2023 as compared to Q1 2022 as the Bank improved its portfolio underwriting in higher quality assets and achieved higher recoveries.

UAB increased its capital base in Q1 2023 by a total of US$150 million through the issuance of AT1 capital instrument, which strengthened the Bank's capital adequacy ratio (CAR) to 19.3 percent and boosted its Tier 1 Capital ratio to 18.1 percent, both of which are well above the applicable regulatory requirements. The Bank's liquidity profile remains strong as evidenced by an advances to stable resources ratio of 80 percent and an eligible liquid asset ratio of 21percent, both comfortably above regulatory thresholds.

The Bank's NPL Ratio was reported at 7.8 percent, representing a significant improvement compared to 11.4 percent in Q1 2022.

Sheikh Faisal bin Sultan bin Salem Al Qassimi, Chairman of the Board of Directors, UAB, said, "We are pleased with the positive results for the first quarter of 2023, which reflect the successful execution of the bank's strategy to strengthen its core businesses, manage its resources effectively, and follow a prudent approach to reduce risks."