United Arab Bank Achieves Significant 30% Growth In Net Profit For Financial Year 2024

United Arab Bank P.J.S.C (UAB) reported a net profit before tax of AED 331 million for 2024, marking a 30% increase from AED 255 million in 2023. This growth is attributed to enhanced operating performance and strong recoveries, leading to reduced net impairment charges. The bank's financial results for the year ending December 31, 2024, were announced recently.

Operating income rose by 5% year-on-year to AED 606 million in 2024. This increase is expected to continue with new portfolio underwritings in quality assets. Total assets expanded by 22% year-on-year to AED 21.5 billion, driven by significant growth in loans, advances, and Islamic financing, which increased by 23%. Customer deposits also saw a rise of 33% year-on-year.

The bank maintains a solid capital adequacy ratio of 17.4% and a CET1 ratio of 12.7%, both exceeding regulatory requirements. This supports future credit growth. The gross non-performing loan (NPL) ratio improved to 3.9% from the previous year's 5%, with an adequate coverage of 118%. UAB continues to focus on expanding its core businesses across Wholesale Banking, Retail Banking, and Treasury & Capital Markets segments.

UAB is transitioning towards a more agile operating model that offers digital solutions and capabilities. This positions the bank as the preferred partner among major clients. The bank's liquidity profile remains robust with an advances to stable resources ratio of 76% and an eligible liquid asset ratio of 17%, both comfortably above regulatory thresholds.

Sheikh Mohammed bin Faisal bin Sultan Al Qassimi, Chairman of the Board of Directors at UAB, expressed pride in the bank's exceptional financial performance in 2024. He stated: "We take immense pride in the Bank's outstanding financial performance in 2024. UAB’s strong performance is a testament to the success of our growth strategy, resilience in our core business, and reinforces our unwavering commitment to delivering long-term value to our shareholders." He highlighted the focus on digitization and innovation as key drivers reshaping banking's future.

He further added that UAB is committed to enhancing customer experiences and contributing significantly to the UAE's economic growth. He extended gratitude to the Board of Directors, senior management, and employees for their dedication and exceptional performance driving success.

Shirish Bhide, CEO of United Arab Bank, commented on the achievements: "Our achievements in 2024 reflect the remarkable progress made over the past three years, driven by our customer-centric approach and the successful execution of our sustainable growth model." He emphasized that strategic planning and effective operational management have been crucial for growth across all business areas.

Bhide also noted that Moody's upgraded UAB's deposit ratings to 'Baa3’ with a 'Positive’ outlook. This upgrade reflects sound financial management and efforts towards strengthening the bank’s financial position.

The bank remains focused on delivering long-term value while adapting to changing market dynamics through innovation and strategic initiatives.

With inputs from WAM