United Arab Bank reports Dh201 million H1 profit, assets reach Dh28 billion

Dubai: United Arab Bank reported a net profit of Dh201 million for the first half of 2026, supported by higher income and double-digit growth across lending, investments and customer deposits.

Second-quarter profit reached Dh126 million, rising 68% from the previous quarter and 19% from a year earlier.

Total operating income increased 13% year-on-year to Dh421 million, driven by a 15% rise in net interest income and growth in the bank’s assets.

Operating profit rose 16% as income growth outpaced expenses.

Lending and deposits grow

Total assets reached Dh28 billion at the end of June, up 16% from a year earlier.

Loans, advances and Islamic financing increased 14% to Dh15.3 billion, while the bank’s investment portfolio grew 25% to Dh8.3 billion.

Customer deposits rose 16% to Dh18.2 billion. Current and savings account balances increased 27% and represented 40% of total deposits.

Shirish Bhide, Chief Executive Officer of UAB, said the bank’s investments were translating into stronger business activity.

“Our performance during the first half of 2026 demonstrates that the investments made across the Bank are translating into tangible business momentum. Growth in operating income, continued expansion across lending, deposits and our investment portfolio, together with healthy asset quality and capital levels, reflect the effectiveness of our execution and the relevance of our proposition across corporate, commercial and personal banking.”

Bad-loan ratio at 2.7%

The bank’s non-performing loan ratio stood at 2.7%, while provision coverage reached 101%.

UAB recorded net impairment charges of Dh6 million during the period, compared with a net reversal of Dh32 million a year earlier, when the result benefited from one-off recoveries and writebacks.

Annualised return on shareholders’ equity stood at 11.6%.

The bank maintained a capital adequacy ratio of 21.1% and a Common Equity Tier 1 ratio of 17.2%, both above regulatory requirements.

Its advances-to-stable-resources ratio stood at 73%, while the eligible liquid asset ratio reached 17%.

Digital investment continues

UAB said it would continue investing in digital services, payment solutions and technology partnerships as part of a transformation programme that began in 2025.

“Building on the transformation journey started during 2025, we continue to improve the way clients engage with UAB through enhanced digital capabilities, modern payment solutions and technology-led innovation and partnerships. These investments are simplifying banking, improving responsiveness and enabling our relationship teams to deliver more relevant and personalised financial solutions across every client segment,” Bhide said.