United Arab Bank · ADX:UAB
United Arab Bank — Q3 2024 Earnings Presentation
18 slides from United Arab Bank's earnings presentation, Oct 20, 2024
Slide 1: Solid performance through diligent execution of strategy
Solid performance through diligent execution of strategy Q3/9M’24 Earnings presentation 20 October 2024
Slide 2: Solid performance in 9M 2024 underlines diligent execution of strategy
Solid performance in 9M 2024 underlines diligent execution of strategy On track with our guidance for the year 20 BILLION Prudent risk Delivering 9M’24 earnings up AED CAR CET1 management a sustainable returns driven by NII and +13% ytd / +36% yoy asset growth Total Assets requisite to 18.8% 13.8% t
Slide 3: Higher net interest income and strong recoveries driving profitability
Higher net interest income and strong recoveries driving profitability 9M’24 net profit growth primarily driven by … coupled with strong recoveries and prudent Income statement highlights (AED Million) higher net interest income … risk management %chg 9M'24 vs 9M'23 Q3'24 %chg %chg vs Q2'24 vs Q3'23
Slide 4: 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 9M’24 yoy NIM declined 24bps ytd and 35bps yoy due to margin compression AED Mn NII: +0.4% qoq, +9% yoy NII: +20% yoy NII Non-int income Non-int in
Slide 5: Expense growth reflects investment in human capital and technology
Expense growth reflects investment in human capital and technology, whilst maintaining discipline and enhancing efficiency Efficiently managing expenses and investing across people, products, processes and systems, in line with the medium-term growth strategy Operating expenses by type (AED Mn) & Co
Slide 6: Strong recoveries and prudent risk management drive lower impairment charges and cost of risk
Strong recoveries and prudent risk management drive lower impairment charges and 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) 38 36 33 (11) (13) Impairment charges, net CoR -
Slide 7: Well-funded balance sheet with adequate liquidity to meet our customers’ demand for loans
Well-funded balance sheet with adequate liquidity to meet our customers’ demand for loans Robust foundation with a solid capital position and adequate liquidity; business pipeline remains strong as Balance Sheet highlights %chg %chg Sep-24 vs Jun'24 vs Dec'23 vs Sep'23 %chg (AED Billion) we diligent
Slide 8: 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 0.01% AED Bn FY'23 9M'24 9M’24 21% 0.01% Debt - Amortised cost 1.2 1.2 24% FY’23 Debt - FVOCI 3.9 4.5 76% 79% Equity - FVOCI 0.001 0.001 TOTAL INVESTMENTS 5.1
Slide 9: Lending growth led by corporates, with retail lending showing positive momentum
Lending growth led by corporates, with retail lending showing positive momentum; business pipeline remains robust with proficient execution Lending grew by 3% in Q3’24 and 13% ytd; business pipeline remains robust Growth in loans was corporate-led, while retail lending is gaining momentum AED Bn +3
Slide 10: 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 Strong growth in CASA deposits driven by focus on enhancing customer experience AED Bn CASA AED Bn -1% qoq, +18% ytd, +31% yoy -8% qoq, +9% ytd, +21% yoy CASA% 36% 37% 34% 36% 34% 12.1 12.
Slide 11: NPL ratio further improved to 4.1% from 5.0% at end-FY’23
NPL ratio further improved to 4.1% 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 NPL ratio coupled with strengthene
Slide 12: Robust capital position and steady shareholder returns
Robust capital position and steady shareholder returns Deploying capital towards balance sheet growth (RWA) to enhance organic Steady shareholder returns capital generation capacity RoSE% (Ytd) +166bps -161bps +22bps 17.8 15.8 15.5 15.5 15.1 13.5% 13.8% RoA% (Ytd) CET1: 27bps RoRWA% (Ytd) 2.5 2.1
Slide 13: Firmly focused on the next phase of growth maintaining a robust foundation
Firmly focused on the next phase of growth maintaining a robust foundation Our cautiously optimistic outlook over the next few quarters is driven by: technology economic sentiment • positive GDP growth1, further picking up pace ahead, with strong contribution from non-oil sectors regulations interes
Slide 14: Appendix
Appendix
Slide 15: Summary financials – Income statement and related ratios
Summary financials – Income statement and related ratios %chg %chg %chg Income statement highlights (AED Million) 9M'24 9M'23 Q3'24 Q2'24 Q3'23 vs 9M'23 vs Q2'24 vs Q3'23 Net Interest Income 354 295 20 111 111 0 102 9 Non-Interest Income 98 152 (35) 41 26 54 72 (44) Total Income 452 447 1 152
Slide 16: Summary financials – Balance sheet and related ratios
Summary financials – Balance sheet and related ratios %chg %chg %chg Balance sheet highlights (AED Billion) Sep-24 Dec-23 Jun-24 Sep-23 vs Dec'23 vs Jun'24 vs Sep'23 Total Assets 20.0 17.6 13 19.8 1 14.7 36 Loans, advances & Islamic financing 10.8 9.4 15 10.4 3 7.7 40 Investments 5.7 5.1 12 5.2 9 4.
Slide 17: 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
Slide 18: 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