SHARJAH – United Arab Bank PJSC (UAB) has released its financial results for the year ended 31 December 2022, reporting net profit of AED 155 million. This represents an increase of 120 per cent over the net profit of AED70 million achieved in 2021, driven by improved operating performance and lower expected credit losses, as well as disciplined cost control.
UAB’s core businesses have made significant progress, with total operating income up 11 percent in FY2022 compared to FY2021. Operating profit also improved by 21 percent in 2022 compared to 2021. and the bank was capitalized with a capital adequacy ratio of 14.5 percent and a CET1 ratio of 13.4 percent, both well above regulatory requirements.
UAB’s NPL ratio improved to 8.2 percent in fiscal 2022 from 11.6 percent in fiscal 2021, and earnings per share improved to eight fils per share compared to three fils per share in fiscal 2021.
The bank remains committed to growing its core business and revenues across its wholesale, retail and financial markets businesses, while investing in digital solutions and capabilities to create a more agile operating model. UAB is focused on positioning itself as the preferred partner in the large corporate client segments.
UAB’s liquidity profile is robust, with an advances to stable resources ratio (ASRR) of 87 percent and an eligible liquidity ratio of 18 percent, both well above regulatory thresholds.
Sheikh Faisal bin Sultan bin Salem Al Qassimi, Chief Executive Officer of UAB, said: “We are pleased with the financial performance of the bank for 2022. The bank is moving forward with a well thought out strategy that supports growth and shareholder expectations. Supported by the strong economy in the United Arab Emirates, we look to the future with confidence and continuously develop our efficient business model and activities in line with our sustainable growth strategy.”
Shirish Bhide, Chief Executive Officer of United Arab Bank, commented: “The growth in the bank’s net profit indicates strong performance in all aspects of the bank’s operations and proves that we are on track to achieve our strategic and financial goals to reach. Our focus will continue to be on delivering an improved customer experience and continued investment in digitization programs.”
Bhide added: “We are confident in our ability to execute on our strategy, building on the significant progress we have made over the past year and the positive business environment. We will continue to invest in the development of the bank’s digital platforms to increase competitiveness and provide a more efficient, resilient and seamless service at a pace that meets our customers’ expectations.”
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