UAB sees 68% plunge in profits as revenues fall

Dubai: United Arab Bank reported (UAB) on Wednesday a 68 per cent plunge in its net profit for the second quarter of 2019 as revenues fell and interest expense climbed.

The bank’s profits reached Dh14 million in the second quarter of this year, from Dh44.6 million a year earlier. Profits for the first half of the year halved, falling to Dh35.7 million from Dh80.5 million in the same period of 2018.

The decline in earnings for the Abu Dhabi-listed bank came as its interest expense jumped by 31 per cent and net interest income and income from Islamic products declined. Fees and commission income also slid in the second quarter to Dh15.8 million from Dh22.3 million.

In a statement, UAB did not elaborate on the drop in profits but pointed out a 6 per cent increase in interest income in the first half of the year and a 6 per cent decline in operating expenses. The bank said these figures provide evident that it is “well places to set sail on its growth journey”.