United Arab Bank P.J.S.C (UAB) reported a net profit (before tax) of AED 331 million for 2024, up from AED 255 million in 2023, marking a 30% increase. This growth is attributed to improved operational performance and strong recoveries, resulting in reduced net impairment charges.
The Bank announced its full-year financial results for 2024, ending 31st December.
Operating income for FY 2024 rose to AED 606 million, a 5% year-on-year (YoY) increase. The Bank anticipates continued strong performance, driven by new quality asset portfolio underwritings.
Total assets grew by 22% YoY to AED 21.5 billion in FY 2024, driven by a 23% YoY rise in loans, advances, and Islamic financing. Customer deposits also saw a 33% YoY increase.
The Bank maintains a strong capital adequacy ratio of 17.4% and a CET1 ratio of 12.7%, both well above regulatory requirements, supporting future credit growth. The gross NPL ratio improved to 3.9% from 5.0% a year ago, with coverage standing at 118%.
The Bank remains focused on expanding core businesses across Wholesale Banking, Retail Banking, and Treasury & Capital Markets, while embracing a more agile operating model that integrates digital solutions and capabilities to enhance its position with key clients.
Commenting on the results, Sheikh Mohammed bin Faisal bin Sultan Al Qassimi, Chairman of UAB, said: “We are immensely proud of UAB’s exceptional performance in 2024. Our growth strategy, resilience, and commitment to digital transformation have reshaped the future of banking and positioned us for continued success.”
Shirish Bhide, CEO of UAB, added: “Our 2024 success highlights the progress made through customer focus and our sustainable growth model. Moody’s upgrade of UAB’s deposit ratings to ‘Baa3’ reflects our strong financial management and progress in strengthening the Bank’s position.”