United Arab Bank’s first-quarter net profit increased by 198 percent to Dh30.4 million from Dh10.2 million in the previous quarter.
The Sharjah-based lender attributed the profit increase to a successful turnaround strategy that has paved the way for a return to sustainable profitability, with UAB continuing to strengthen its core businesses, streamline its cost base, and maintain key banking fundamentals.
The UAB’s financial performance was aided by significant progress within the ‘core’ businesses, which saw total operating income increase by 3% quarter-on-quarter while operating expenses were reduced by 8% quarter-on-quarter.
With a focus on asset quality, the balance sheet has been significantly strengthened, resulting in a 55 percent reduction in net impairment loss compared to the first quarter of 2021. Risk cost decreased from 2.9% in the first quarter of 2021 to 1.4% in the first quarter of 2022.
The positive results for the first quarter of 2022 reflect the successful execution of the bank’s transformation strategy, according to Sheikh Faisal bin Sultan bin Salem Al Qassimi, chairman of the board of directors.
“We will continue to focus on modernizing the technical infrastructure and moving towards a digital world while following best banking practices,” he said.
“We will continue to pursue our ambitious vision and accelerate our investment in digital transformation to effectively manage our resources and reduce risk,” Sheikh Faisal said.
