UAE-based United Arab Bank (UAB) has reported a net profit of Dh77 million ($21 million) in 2018 which represents an increase of 345 per cent compared to 2017, a media report said.

UAB embarked on its journey to become a safer, stronger and sustainable Bank. Central to this Transformation Strategy were four key pillars: pro-actively deleverage higher risk non-core portfolios; reduce costs; enhance the Bank’s risk and control frameworks; and strengthen key banking fundamentals, reported state news agency Wam.

Sheikh Faisal bin Sultan bin Salem Al Qassimi, chairman of the Board of Directors, said: "The bank's improved financial performance in 2018 was the direct result of placing our customers first, which is at the core of the business strategy led by our management team."

The bank has continued to record significant progress in deleveraging its ‘non-core’ higher risk portfolios as they have been managed down to 1 per cent of total loans at the end of 2018.

Total Income recorded Dh647 million in 2018 and it was aided by an increase in Interest Income of 11 per cent in 2018 compared to 2017.

The bank’s liquidity profile remains strong as evidenced by a robust Loan to Deposit Ratio of 91 percent. Customer Deposits (being 78 percent of Total Liabilities) have and will continue to represent the Bank’s key source of funds.

The bank’s Provisions for Credit Losses of Dh242 million represent a healthy reduction of 16 percent compared to 2017 supported by prudent risk management and focused reduction in risk weighted assets. Going forward, UAB’s transition to a lower risk model should see these moderate further in the medium term.

Sheikh Mohamed bin Abdulla Al Nuaimi, Acting CEO, commented, "I am pleased to report that our financial performance in 2018 was aided by significant progress within our ‘core’ businesses and a reduction in impairment charges which resulted in recording a significant uplift in net profit.