United Arab Bank (UAB) delivered a standout financial performance in 2024, reporting a 30% year-on-year increase in net profit before tax to AED 331 million — up from AED 255 million in 2023. The results, driven by stronger operating income, robust recoveries, and lower net impairment charges, underscore the bank's sustained momentum across its core businesses.
Key Financial Highlights
UAB's operating income reached AED 606 million in 2024, a 5% increase on the prior year. Net interest income grew 18% year-on-year, reflecting improved asset yields and a larger lending book.
Total assets expanded 22% to AED 21.5 billion, powered by a 23% increase in loans, advances, and Islamic financing products. Customer deposit balances climbed 33% year-on-year — a figure that signals robust depositor confidence in the institution.
On the capital side, UAB's capital adequacy ratio stood at 17.4%, with a Common Equity Tier 1 (CET1) ratio of 12.7%, both comfortably above regulatory minimums. The bank's advances-to-stable-resources ratio of 76% and eligible liquid asset ratio of 17% further reinforce its strong liquidity position.
Improving Asset Quality
The non-performing loan (NPL) ratio improved to 3.9% from 5.0% in the prior period, supported by NPL coverage of 118%. The improvement reflects UAB's focus on proactive portfolio management and effective credit recoveries throughout 2024.
Moody's Rating Upgrade and Strategic Outlook
A significant endorsement of UAB's financial health came in September 2024, when Moody's upgraded the bank's deposit rating to Baa3 with a continued Positive outlook — a reflection of its sound management and strengthened balance sheet.
UAB Chairman Sheikh Mohammed bin Faisal bin Sultan Al Qassimi highlighted the breadth of the achievement: "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."
The Chairman also emphasised the bank's digital agenda, noting that "relentless focus on digitization and transformative innovation is reshaping the future of banking, enhancing our digital capabilities and operational excellence."
CEO: Sustainable Growth Model
CEO Shirish Bhide attributed the results to disciplined execution: "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."
UAB is intensifying its investment across Wholesale Banking, Retail Banking, and Treasury and Capital Markets, alongside upgrades to its digital banking infrastructure aimed at improving customer experience and operational efficiency.
Outlook for 2025
United Arab Bank enters 2025 with a strengthened balance sheet, an upgraded credit profile, and expanding digital capabilities. The bank aims to build on its 2024 momentum by deepening its position across UAE banking segments and continuing to grow its asset base through prudent, sustainable lending.
