Abu Dhabi-Mubasher: United Arab Bank (UAB) posted a 86% decline in its second-quarter profits, according to a bourse statement.
Profits amounted to AED 25.70 million ($7 million) in Q2-16, compared to AED 182.94 million ($49.8 million) in Q2-15.
The bank generated net profits of AED 70.76 million in the first half of 2016, a decline of 79.5% from AED 344.43 million in the prior-year period.
Operating revenues stood at AED 475.77 million in H1-16, compared to AED 695.75 million in H1-15.
“Non-Interest Income is up by 12% quarter on quarter due to increased focus on generating ancillary revenue streams, and our ‘core’ Customer Deposits grew by 3% against March 2016. Gross Loans remained in line with Q1 2016 despite a further 17% reduction in our ‘non-core’ in the second quarter," UAB's acting CEO Samer Tamimi commented.
"Our Provisions are stable at Q1 2016 levels, however, H1 2016 has experienced a substantial reduction compared H2 2015. Looking further ahead, as UAB continues its transition to a lower risk model, these reductions will moderate further in the medium to long term,” Tamimi added.
