(MENAFN- Emirates News Agency (WAM))
SHARJAH, 25th April, 2018 (WAM) -- The United Arab Bank, UAB, has announced its financial results during the first three months of 2018. The bank reported a net profit of AED36 million for the first quarter of 2018 representing a 29 percent uplift against the same period last year, primarily driven by growth in net interest income and reduction in provision charges following a transition to a lower risk business model Commenting on the results, Sheikh Faisal bin Sultan Al Qassimi, Chairman of the Board of Directors, said, "We are pleased to see the improved operating performance in Q1 2018 which demonstrates the strength of our ‘core' business. We have significantly strengthened the Balance Sheet, concentrated on our core businesses, de-risked the business and captured bank-wide cost savings through the successful execution of our transformation strategy, all of which have enabled the Bank to report a 29 percent uplift in net profit."
Sheikh Mohamed bin Abdulla Al Nuaimi, Acting Chief Executive Officer, said, "I am pleased to report that our financial performance is aided by a significant progress within our core businesses recording a 13 percent quarter-on-quarter, q-on-q uplift in net interest income and eight percent q-on-q uplift in total income, whilst operating expenses continue to be robustly managed."
Total income was AED174 million in Q1 2018 representing eight percent increase compared to Q4 2017 given the strategic emphasis placed on deepening relationships within the bank's core corporate banking unit and supported by proactive cost of funds management.
Provision for Credit Losses for the three months were AED54 million being four percent lower than the same period in 2017, driven by prudent risk management. Going forward, with UAB's transition to a lower risk model should see these moderate further.
The bank remains committed to ensuring the business is supported by an efficient operating model and will continue to invest in its people, processes, systems and other critical infrastructure.
WAM/Rola Alghoul/Nour Salman
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