Paul Trowbridge; Chief Executive Officer of United Arab Bank
United Arab Bank announces its Financial Results for the three months ended 31 March 2014.
UAB, one of the fastest-growing banks in the region, announces a net profit of AED161m, for the first three months of the year, an increase of 34% over the same period in 2013.
Sheikh Faisal Bin Sultan Bin Salem Al Qassimi, Chairman of the Board of Directors said, “The Bank’s exceptional performance in 2013 has continued into the first quarter of 2014, reaffirming its position as the fastest growing bank in the Middle East. UAB’s sustained growth and momentum of recent years continues, strengthening our position in a highly competitive market. As we continue to gain traction, we are confident of our ability to deliver solid results and offer true value to customers, shareholders and partners.”
Mr Paul Trowbridge, Chief Executive Officer commented on the Bank’s quarterly results, “We continue to go from strength to strength as is evident from our performance in the first quarter of 2014, following the Bank’s strong 2013 results. Our Loans & Advances have significantly increased and so have our Customer Deposits, indicating our customer-centric approach as one of the main reasons we continue to perform outstandingly well. In addition, our focus continues to be on identifying and developing new income drivers, with success demonstrated by growth across all key income metrics.”
“Our award-winning products and services, including UAB Rewards which has been recognised as the ‘Best Customer Loyalty Program’ for two years consecutively, as well as our Visa Infinite card, named ‘Best Premium Card’, both awarded by the Banker Middle East magazine, are just some of the reasons behind our success. In addition, the benefits of our strategic alliance with Commercial Bank of Qatar and our associations with National Bank of Oman and Alternatifbank in Turkey have positioned us well for future growth and created opportunities for integrated services across the region.”
The bank recorded Operating Income of AED223m, a 44% increase over Q1 2013. Total Income also improved at a similarly impressive rate of 45% to AED327m, with robust underlying performance across both Net Interest Income and Other Income, up 42% and 52% respectively versus prior year.
Overall, non-interest income grew strongly in the quarter to AED87m, driven primarily by Net Fees & Commissions (AED30m) and Foreign Exchange Income (AED20m). With non-interest income representing 27% of Total Income in Q1 2014, our strategic focus of deepening customer relationships is clearly delivering results.
Operating expenses for the quarter were AED104m compared to AED71m in the corresponding period of 2013, and in line with management expectations. The cost base is representative of the investment the bank continues to make in enhancing the customer experience and developing infrastructure to support future growth.
UAB’s successful network expansion programme has continued in the first quarter, with the bank now benefiting from 26 fully operational branches across the UAE. In parallel, the bank continues to invest in other distribution channels, with Q1 2014 seeing the launch of a new Online Trade Portal, all with the purpose of enhancing the overall customer experience.