Sharjah: United Arab Bank (UAB) on Sunday announced a net profit of Dh328 million for the first six months of the year, an increase of 26 per cent compared to the first half of 2013.
The bank generated operating profit of Dh475 million, a 43 per cent increase over the same period last year .
Total income increased 41 per cent to Dh676 million, with solid performance across both net interest income and non-interest income, up 40 per cent and 46 per cent respectively compared to the first half of 2013.
Non-interest income, expanded strongly in the first half to Dh183 million, driven primarily by other operating income (Dh80million) and net fees and commissions (Dh61 million).
“The bank has maintained an impressive pace of growth in a highly competitive market, once again positioning itself as the fastest growing bank in the Middle East,” said Shaikh Faisal Bin Sultan Bin Salem Al Qasimi, chairman of the board of directors.
Operating expenses for the first six months were Dh201 million compared to Dh146 million. Despite substantial investment in infrastructure, the bank’s cost-to-income ratio improved to 29.7 per cent in the first half of the year.
Provision charges in the first half of 2014 were Dh147 million compared to Dh72 million for the same period in 2013. UAB’s non-performing loan ratio was 1.5 per cent and coverage ratio was at 134 per cent as at 30 June 2014.
The bank’s total loans and advances improved by 35 per cent to Dh17.9 billion versus first half of 2013, with growth across all business units. Similarly, customer deposits increased by an outstanding 49 per cent in the same period to stand at Dh18.6 billion at the close of the first half of this year.
“The improving business mix and efficiency of our funding have led to a significant increase in loans and advances and customer deposits. These increased volumes are a direct result of our proactive enhancements and continued efforts to identify and develop new income drivers,” said Paul Trowbridge, chief executive office of UAB.
