United Arab Bank turns around with Dh10.2 million net profit
United Arab Bank (UAB) reported a met profit of Dh10.2 million for Q1 2021 compared to a net loss of Dh119.9m in Q1 2020, as the successful execution of the turnaround strategy paved the way for a return to profitability, Trend reports with reference to Gulf News.
UAB continued strengthen its core businesses; streamline the cost base; and maintain key banking fundamentals.
UAB’s financial performance was aided by a significant progress within the ‘core’ businesses recording a 5 per cent year on year uplift in total income (32 per cent quarter on quarter increase), whilst operating expenses continue to be robustly managed and recorded a reduction of 6 per cent year on year.
The balance sheet has been significantly strengthened with a focus on quality assets which resulted in recording 66 per cent year on year reduction in provisions.
“The positive results for the first quarter of 2021 represent a return to profitable operations and are clear evidence that the Bank’s low risk and efficient UAE focused business model is appropriate,” said Ahmad Abu Eideh, Chief Executive Officer of United Arab Bank.
“The investment that the bank started in developing and modernising the technological infrastructure and hence moving forward towards the digital world has proved effective for increasing our ability to quickly adapt to the COVID-19 repercussions. As a result, the bank succeeded in overcoming the pandemic, mitigating its repercussions effectively and responding instantly to customer needs.”