United Arab Bank, one of the leading regional banks based in Sharjah, said it has registered a record net profit of Dh410 million ($112 million) for the year ended December 31, 2012, up 24 per cent over the previous year.

A joint venture between UAE investors and Societe Generale, UAB said this was the highest annual net profit ever reported by the bank.

During the period, customer loans and advances increased by 35 per cent to  Dh10.9 billion from Dh8.1 billion at December 31, 2011 with customer deposits up by 29 per cent to Dh10.1 billion compared with Dh7.8 billion at the 2011 year-end, said a statement from the bank.

The bank delivered a full year operating profit of  Dh531 million, a 33 per cent increase over Dh401 million achieved in 2011.

The total operating income surged 32 per cent to Dh765 million, driven by a 31 per cent increase in net interest income which hit Dh567 million and 32 per cent growth in non-interest income which rose to Dh198 million, attributable to growth in both Corporate and Retail businesses, it added.

CEO Paul Trowbridge said the bank had performed outstandingly throughout 2012 which has culminated in another excellent financial performance.

"The year-over-year growth in net profit is 24 per cent, which is an excellent result and one which the bank can be extremely proud of. UAB continues to grow and deliver record financial results whilst not compromising on its prudent approach to credit," he remarked.

"The strategic growth plans are delivering the success we envisioned and continue to remain embedded in the way we conduct and grow our business, adding value for both new and existing customers," he said.

UAB's commitment to quality, said Trowbridge, has been further supported through its expanded branch network, the new SME business segment and its improved product offerings.

"This has positioned UAB as one of the fastest growing banks in the region, with the size of the Bank doubling in the last two years, as measured by customer deposits, loans and total assets. The benefits of our regional ‘best practice’ partnership and Shareholder alliance with The Commercial Bank of Qatar are clearly delivering the results we expected," he added.

Commenting on the results, chairman Sheikh Faisal Bin Sultan Bin Salem Al Qassimi said, “The financial results for 2012 reflect UAB’s strong performance and we can look forward to facing the challenges of 2013 with confidence.”

The provision charge for 2012 was Dh122 million, compared with Dh71 million in 2011, and continues to reflect a prudent and proactive approach to general provisioning adopted by the bank with regard to its management of risk and growing asset portfolio.

"The year 2012 has been a year of great achievement. The foundations for further growth and success will continue to be built, enabling UAB to sustain its momentum into 2013," said Trowbridge.
 
"The feedback and recognition that we receive from customers, partners and the financial community supports our commitment to provide customers with value adding products, through quality customer service, and financial growth to shareholders," he added.

Trowbridge also acknowledged the benefits derived from the strategic alliance with The Commercial Bank of Qatar (CBQ). CBQ acquired 40 per cent of UAB in 2007 after concluding a similar alliance with National Bank of Oman two years previously.

The alliance of the three banks provides synergies across a range of business and support areas which facilitates commercial growth, he stated.

The bank is rated by Moody’s as Baa1 with a stable outlook.-TradeArabia News Service