United Arab Bank Reports Strong Financial Growth in 2024
Significant Profit Increase
The United Arab Bank PJSC (UAB) has announced 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 during the same period in 2023.
Increased Income and Asset Growth
Net interest income rose by 20% year-on-year, reaching AED 354 million. The bank’s total assets grew by 13% since December 2023, contributing to the profit increase. A focus on risk management also led to a lower cost of risk.
Strengthened Balance Sheet
The bank’s balance sheet was significantly strengthened, with loans, advances, and Islamic financing growing by 15% compared to December 2023. This improvement led to an upgrade in credit ratings to investment grade by Moody’s, now rated Baa3/P-3/Positive, and by Fitch, rated BBB+/F2/Stable.
CEO’s Statement
Shirish Bhide, CEO of UAB, stated that the bank’s performance reflects the successful implementation of their growth strategy. He emphasized the commitment to delivering long-term value and highlighted the importance of innovation and digital capabilities for future growth.
Doubts Revealed
United Arab Bank -: United Arab Bank is a bank located in the United Arab Emirates, which is a country in the Middle East. It provides financial services like loans, savings accounts, and more.
Profit Increase -: Profit increase means the bank made more money than it did before. In this case, the bank’s profit went up by 12% compared to the previous year.
AED -: AED stands for Arab Emirates Dirham, which is the currency used in the United Arab Emirates. It’s like how we use Rupees in India.
Net Interest Income -: Net interest income is the money a bank earns from its lending activities, like giving loans, after paying interest on deposits. It’s an important part of a bank’s earnings.
Moody’s -: Moody’s is a company that gives ratings to banks and other financial institutions. These ratings help people understand how safe or risky it is to invest in or lend money to these institutions.
Credit Rating -: A credit rating is a score that shows how likely a bank or company is to pay back its debts. A higher rating means it’s safer to lend money to them.
Baa3 -: Baa3 is a specific credit rating given by Moody’s. It means the bank is considered to have moderate credit risk, which is an average level of safety for investors.
CEO Shirish Bhide -: Shirish Bhide is the Chief Executive Officer of United Arab Bank. The CEO is the person in charge of managing the bank and making important decisions.
Sustainable Growth -: Sustainable growth means growing in a way that can be maintained over time without causing problems. It involves being careful with resources and planning for the future.
Innovation -: Innovation means creating new ideas or ways of doing things. In banking, it could mean using new technology to make banking easier or more efficient.
