United Arab Bank Net Profit Up By 50% For The First Half Of 2025

(MENAFN- Khaleej Times)

United Arab Bank on Thursday announced that it posted a net profit of Dh208 million for the first half of 2025, compared to Dh139 million for the same period last year, representing a 50 per cent YoY increase. Total income rose by 24 per cent YoY to Dh374 million.

The increase in net profit reflects significant growth in total assets-up 11 per cent from December 2024. UAB's balance sheet was further strengthened through a continued focus on asset quality and capital resilience.

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Earnings per share rose to Dh0.10 per share in H1 2025 compared to Dh0.07 in the corresponding prior year period.

Total income increased by 24 per cent YoY to Dh374 million for H1 2025, compared to Dh300 million for H1 2024, driven by higher net interest income which increased by 13 per cent and higher non-interest income increasing by 70 per cent compared to the corresponding prior year period.

Total assets stood at Dh23.9 billion for H1 2025 representing a growth of 11 per cent compared to December 2024. This is driven by a 16 per cent growth in loans, advances, and Islamic financing and 10 per cent growth in Investments.

Asset quality metrics maintained their improvement streak with non-performing loans (NPL) ratio now dropping below 3 per cent to 2.2 per cent, and provision coverage increased to 148 per cent.

The bank's capital position remains robust, with a Common Equity Tier 1 (CET1) of 12.1 per cent and total capital adequacy ratio (CAR) at 16.3 per cent.

UAB's liquidity profile remains strong, as reflected by an advances to stable resources ratio of 80 per cent, and an eligible liquid asset ratio of 17 per cent - both comfortably above regulatory thresholds.

Sheikh Mohammed bin Faisal bin Sultan Al Qassimi, Chairman of the Board of Directors of United Arab Bank, said:“The Bank's exceptional financial performance in the first half of 2025 underscores the effectiveness of our strategic vision and the strength of our governance framework. Looking ahead, we are unwavering in our commitment to advancing the UAE's economic agenda while creating enduring value for all stakeholders. We will continue to lead with discipline, resilience, and an uncompromising focus on innovation, digital transformation, and operational excellence.”

Shirish Bhide, Chief Executive Officer of United Arab Bank, said:“Our first-half results reflect robust operational performance and the growing impact of our transformation agenda. The strong growth in profitability and total assets highlights the success of our strategic execution and our unwavering focus on customer value, efficiency, and prudent risk-taking As we move forward, we will continue to scale our digital capabilities, introduce innovative products, and further strengthen our control environment-while keeping the customer at the center of everything we do.”

Fitch and Moody's affirmed UAB's credit ratings at BBB+/Baa3, with 'Stable' and 'Positive' outlooks, respectively.

United Arab Bank is in the process of enhancing its capital by up to Dh1.03 billion through a Rights Issue offered to existing shareholders. This capital injection will increase the total share capital by up to Dh3.09 billion, subject to completion of the process and necessary regulatory approvals, strengthening the Bank's capital adequacy and enhance its resilience to any adverse macro-financial shocks, while enabling future asset growth towards achieving its strategic and financial goals.

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