United Arab Bank Achieves 12% Growth In Pre-Tax Net Profit For First Nine Months Of 2024

United Arab Bank PJSC (UAB) has released its financial results for the first nine months of 2024, showing a net profit before tax of AED 233 million. This marks a 12% increase compared to AED 209 million in the same period last year. Net interest income also rose by 20% year-on-year, reaching AED 354 million.

The bank's total assets grew by 13% since December 2023, contributing to the rise in net profit. This growth was supported by a careful approach to risk management, which helped reduce the cost of risk. Loans, advances, and Islamic financing increased by 15%, strengthening the balance sheet with a focus on quality.

UAB's financial position has been bolstered through strategic growth plans executed over recent quarters. This led to an upgrade in credit ratings to investment grade (Baa3) by Moody’s. The positive outlook initiated in September 2023 was maintained after the upgrade, reflecting expectations for sound asset quality and solid capital buffers.

Moody’s now rates UAB at Baa3/P-3/Positive, while Fitch assigns BBB+/F2/Stable ratings. These ratings underscore improved governance practices and risk mitigation measures alongside enhanced profitability metrics.

Shirish Bhide, CEO of United Arab Bank, commented on the performance: "UAB’s performance in the first nine months of 2024 demonstrates the successful implementation of our strategy for sustainable growth. This achievement reflects our commitment to delivering long-term value to our shareholders and customers."

He further stated that UAB will continue investing in innovation and digital capabilities to enhance customer experience and drive efficiency. These investments aim to support long-term growth objectives.

The bank's strategic efforts have not only improved its financial standing but also reinforced its commitment to sustainable growth. By focusing on innovation and customer satisfaction, UAB aims to maintain its positive trajectory in the coming years.

With inputs from WAM