Dubai: United Arab Bank (UAB) has posted a full year net profit of Dh605 million, an increase of 10 per cent over 2013.
The bank reported operating profit of Dh979 million, up 36 per cent on 2013. Total income increased 32 per cent to Dh1.37 billion. Both net interest income and non-interest income were up 28 per cent and 46 per cent respectively compared to the previous year. Non-Interest income advanced strongly in 2014 to Dh364 million, driven primarily by Dh121 million in net fees and commissions.
Operating expenses for the period were Dh394 million compared to Dh319 million in 2013. But the bank’s cost to income ratio improved to 28.7 per cent from 30.6 per cent in 2013.
Provision charges in 2014 were Dh374 million compared to Dh168 million in 2013. The bank’s non-performing loan ratio was 2.6 per cent and coverage ratio was at 111 per cent at the year end 2014.
UAB’s total loans and advances improved 17 per cent to Dh17.9 billion compare to 2013. Similarly, Customer Deposits increased 24 per cent to Dh18.7 billion.
“Backed by solid fundamentals and an expanding presence in the market, UAB was successful in growing both its loan portfolios and customer deposits. With our award winning propositions we aim to constantly find innovative ways to exceed our customers’ expectations and provide exceptional service,” said Paul Trowbridge, Chief Executive of UAB.
UAB’s board has recommended a cash dividend of 10 per cent of the paid up capital amounting to Dh114.6 million, along with a scrip dividend of 20 per cent of the paid up capital amounting to Dh229.2 million.
