United Arab Bank · ADX:UAB

United Arab Bank — FY2024 Earnings Presentation

20 slides from United Arab Bank's earnings presentation, Feb 4, 2025

  1. Slide 1: Focused on sustainable growth, leveraging a robust foundation

    Focused on sustainable growth, leveraging a robust foundation Financial Year 2024 Earnings presentation 4 February 2025

  2. Slide 2: UAB's turnaround strategy has delivered a strong foundation (1/2)

    UAB’s turnaround strategy has delivered a strong foundation ensuring sustainable growth and stability ahead (1/2) NET PROFIT CAGR since FY’21: 68% RETURN ON Net profit (before tax) records (BEFORE TAX) SHAREHOLDERS’ EQUITY AED Mn (%) 16.1 331 3-year CAGR of 68% with 255 significant improvement in 4.

  3. Slide 3: UAB's turnaround strategy has delivered a strong foundation (2/2)

    UAB’s turnaround strategy has delivered a strong foundation ensuring sustainable growth and stability ahead (2/2) ✓ Operating models redefined to align with strategic growth Re-invigorate our Islamic window Sustainable and superior profits goals across all business lines through business growth ✓ Im

  4. Slide 4: Strong business momentum drives double-digit growth in balance sheet and profitability

    Strong business momentum drives double-digit growth in balance sheet and profitability FY’24 earnings up AED 21 BILLION Healthy asset quality CAR CET1 Delivering driven by NII and +22% yoy metrics see further sustainable returns asset growth Total Assets improvement 17.4% 12.7% to shareholders Growt

  5. Slide 5: Growth in profits driven by core income and strong recoveries

    Growth in profits driven by core income and strong recoveries FY’24 net profit growth primarily driven by higher … complemented by strong recoveries and Income statement highlights (AED Million) core income across businesses … positive macroeconomic environment FY'24 %chg Q4'24 %chg %chg vs FY'23 vs

  6. Slide 6: Strong asset growth coupled with higher interest rates drove NII and total operating income

    Strong asset growth coupled with higher interest rates drove NII and total operating income higher Operating income: NII recorded double-digit growth in FY’24 yoy NIM declined 33bps yoy due to margin compression AED Mn NII: +1% qoq, +12% yoy NII: +18% yoy NII Non-int income Non-int inc: +1% qoq, +40

  7. Slide 7: Expense growth reflects investment in human capital and technology

    Expense growth reflects investment in human capital and technology, strengthening our foundation for future growth and enhancing efficiency Disciplined expense management and investing across people, products, processes and systems, in line with the medium-term growth strategy Operating expenses by

  8. Slide 8: Strong recoveries drive impairment reversals and negative cost of risk

    Strong recoveries and positive macroeconomic environment drives impairment reversals and negative cost of risk Firmly focused on ensuring healthy asset quality and implementation of prudent risk management practices, amid strong business growth AED Mn CoR – ytd (bps) 36 33 (11) (13) (47) Impairment

  9. Slide 9: Onboarding of new clients, strong demand and healthy liquidity drive balance sheet growth

    Onboarding of new clients, strong customer-driven demand and healthy liquidity in the markets drive all-round growth in balance sheet Robust foundation with a solid capital position and adequate liquidity; business pipeline remains strong as Balance Sheet highlights %chg %chg Dec-24 vs Sep'24 vs Dec

  10. Slide 10: Quality investment portfolio mandated to meet liquidity requirements and enhance yield

    Quality investment portfolio mandated to meet liquidity requirements and enhance yield Investments book primarily consist of debt instruments 0.02% AED Bn FY'23 FY'24 FY’24 0.01% 28% Debt - Amortised cost 1.2 1.7 24% FY’23 Debt - FVOCI 3.9 4.3 76% 72% Equity - FVOCI 0.001 0.001 TOTAL INVESTMENTS 5.1

  11. Slide 11: Growth in loans primarily driven by retail mortgages and wholesale lending

    Growth in loans primarily driven by retail mortgages, wholesale lending mainly to FI’s, real estate, transport & communications sector; business pipeline remains robust with proficient execution Lending grew by 7% in Q4’24 and 23% ytd; business pipeline remains robust Growth in loans in FY’24 was al

  12. Slide 12: Solid growth in customer deposits, as liquidity metrics remain robust

    Solid growth in customer deposits, as liquidity metrics remain robust Solid growth in customer deposits Efforts ongoing to increase CASA contribution in order to support funding costs optimisation AED Bn CASA AED Bn ​+13%​ qoq, +33%​ yoy ​+12%​ qoq, +22%​ yoy CASA% 37% 34% 36% 34% 34% 13.6 12.1 12.0

  13. Slide 13: Gross NPL ratio improved to 3.9% from 5.0% at end-FY'23

    Gross NPL ratio improved to 3.9% from 5.0% at end-FY’23, while provision coverage remains adequate across the portfolio Committed to ensuring adherence to prudent risk practices with proactive portfolio management being a key focus area Significant improvement in Gross NPL ratio coupled with adequat

  14. Slide 14: Robust capital position and improved shareholder returns

    Robust capital position and improved shareholder returns Deploying capital towards balance sheet growth (RWA) to enhance organic Improved shareholder returns capital generation capacity RoSE% (Ytd) +223bps -173bps 16.1 15.8 15.5 15.5 15.1 -134bps 13.5% 12.7% RoA% (Ytd) CET1: -84​bps RoRWA% (Ytd) 2.1

  15. Slide 15: Firmly focused on the next phase of growth maintaining a robust foundation

    Firmly focused on the next phase of growth maintaining a robust foundation We remain cautiously optimistic on the outlook over the next few quarters: technology economic sentiment • positive GDP growth1, further picking up pace ahead, with strong contribution from non-oil sectors regulations interes

  16. Slide 16: Appendix

    Appendix

  17. Slide 17: Summary financials – Income statement and related ratios

    Summary financials – Income statement and related ratios %chg %chg ​%chg Income statement highlights (AED Million) ​FY'24​ FY'23 Q4'24 Q3'24 Q4'23 vs FY'23 vs Q3'24 vs Q4'23​ Net Interest Income ​467​ 395 18 113 111 1 100 12 Non-Interest Income 139 182 (23) 41 41 1 29 40 Total Income 606 576 5 154 1

  18. Slide 18: Summary financials – Balance sheet and related ratios

    Summary financials – Balance sheet and related ratios %chg %chg Balance sheet highlights (AED Billion) Dec-24 Dec-23 Sep-24 vs Dec'23 vs Sep'24 Total Assets 21.5 17.6 22 20.0 7 Loans, advances & Islamic financing 11.5 9.4 23 10.8 7 Investments 6.0 5.1 18 5.7 6 Customers’ deposits 13.6 10.2 33 12.0 1

  19. Slide 19: Disclaimer

    Disclaimer • This presentation has been prepared for information purposes only and is not and does not form part of any offer for sale or solicitation of any offer to subscribe for or purchase or sell any securities nor shall it or any part of it form the basis of or be relied on in connection with

  20. Slide 20: THANK YOU

    THANK YOU For any further queries, please contact UAB Investor Relations ir@uab.ae Access our latest presentations and reports: Earnings Presentations Annual Reports Sustainability Reports Your Trusted Partner in UAE since 1975

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