United Arab Bank Posts Dh75 Million Net Profit For Q1

(MENAFN- Khaleej Times) United Arab Bank (UAB) on Wednesday announced that it posted a net profit of Dh75 million in the first quarter of 2026, supported by steady balance sheet expansion and stronger core income, even as regional markets grappled with heightened geopolitical and global volatility.

Total operating income rose 16 per cent year on year to Dh193 million, driven primarily by a sharp increase in net interest income, which climbed 34 per cent compared with the same period last year. The higher income base, coupled with tighter cost control, lifted operating profit by 29 per cent year on year, underscoring the bank's focus on earnings resilience rather than one-off gains.

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UAB recorded net impairment charges of Dh18 million during the quarter, compared with a net reversal of Dh34 million a year earlier, when recoveries and write-backs had boosted results. Despite the higher provisioning, asset quality indicators remained stable, with the non-performing loan ratio at 2.6 per cent and provision coverage at 110 per cent.

The balance sheet continued to grow at a healthy pace. Total assets stood at Dh26.9 billion at the end of March, up 15 per cent year on year. Loans, advances and Islamic financing increased 21 per cent to Dh15.1 billion, while investments rose 22 per cent to Dh8.3 billion. Customer deposits grew 11 per cent to Dh16.7 billion, reflecting steady funding inflows.

Capital and liquidity levels remained well above regulatory thresholds. The capital adequacy ratio stood at 20.4 per cent, with CET1 at 16.4 per cent. Liquidity measures also remained comfortable, with the advances-to-stable-resources ratio at 73 per cent and the eligible liquid asset ratio at 16 per cent.

Shirish Bhide, chief executive officer of United Arab Bank, said the results reflected the bank's disciplined operating approach despite a challenging environment.“UAB has delivered a solid set of results in the first quarter of 2026, demonstrating the strength and resilience of our business model,” he said.“In a quarter that saw a difficult period for the region, UAB delivered robust top-line and operating profit growth vis-à-vis the same period in 2025.”

The bank's credit profile also remained intact during the quarter, with Fitch affirming UAB's long-term rating at BBB+ with a stable outlook, while Moody's maintained its Baa2 investment-grade rating.

UAB also continued a measured expansion of its physical footprint, adding a new branch at Dubai Festival City Mall and planning another outlet in Abu Dhabi, as it balances branch-led access with digital banking capabilities.

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