United Arab Bank · ADX:UAB
United Arab Bank — Q1 2025 Earnings Presentation
18 slides from United Arab Bank's earnings presentation, Apr 28, 2025
Slide 1: Growth & Resilience: First Quarter 2025 Earnings Presentation
GROWTH & RESILIENCE First Quarter 2025 Earnings presentation 28 April 2025
Slide 2: Q1'25 performance sets the foundation for a solid 2025 ahead
Q1’25 performance sets the foundation for a solid 2025 ahead Q1’25 earnings growth led by Strong asset growth Further improvement in asset quality increase in assets and strong recoveries Total +31% Gross NPL Assets 23bn yoy ratio 3.4% FY’24 3.9% Net Profit 102mn +49% yoy Loans, advances & Islamic f
Slide 3: Growth in profits driven by core income and strong recoveries
Growth in profits driven by core income and strong recoveries Q1’25 net profit growth driven by improved … and strong recoveries leading to a net reversal Income statement highlights (AED Million) operating performance … in impairment charges Q1'25 %chg %chg vs Q1'24 vs Q4'24 • Operating income in
Slide 4: Operating income growth led by higher non-interest income; NII impacted by rate cuts
Operating income growth led by higher non-interest income; NII impacted by interest rate cuts in H2’24, although partially offset by asset growth Operating income: Increase in non-interest income offsets the decline in NII Q1’25 NIM lower by 88bps yoy and 26bps qoq due to adverse impact of AED Mn ra
Slide 5: Growth in expenses in line with business growth including technology investments
Growth in expenses in line with business growth including investments in technology infrastructure as well as non-discretionary regulatory expenses Efficiently managing expenses and investing across people, products, processes and systems, in line with the medium-term growth strategy Operating expen
Slide 6: Asset resolution and strong recoveries lead to net negative cost of risk
Asset resolution and strong recoveries lead to a net negative cost of risk for the 4th consecutive quarter Firmly focused on ensuring asset quality and implementation of prudent risk management practices, amid strong business growth AED Mn CoR – ytd (bps) 33 (11) (13) (47) (110) Impairment charges,
Slide 7: Solid execution of lending pipeline and strong liquidity drives asset growth
Solid execution of a robust lending pipeline coupled with strong liquidity drives asset growth Robust foundation with a solid capital position and adequate liquidity; business pipeline remains strong as Balance Sheet highlights %chg %chg Mar-25 vs Dec'24 vs Mar'24 (AED Billion) we diligently execute
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'24 Q1'25 Q1’25 0.02% Debt - Amortised cost 1.7 2.6 39% 28% FY’24 Debt - FVOCI 4.3 4.2 72% 61% Equity - FVOCI 0.001 0.001 TOTAL INVESTMENTS 6.0
Slide 9: Growth in loans driven by corporate and retail customers
Growth in loans driven by, both, corporate and retail customers; business pipeline remains robust with proficient execution Gross loans grew by 8% in Q1’25 and 28% yoy; business pipeline remains robust Growth in loans led by corporate (+8%) and retail term loans (+16%) AED Bn +8% qoq, +28% yoy AE
Slide 10: Customer deposits, incl CASA, witnesses strong growth; liquidity metrics remain robust
Customer deposits, incl CASA, witnesses strong growth; liquidity metrics remain robust Strong growth in customer deposits Efforts ongoing to increase CASA contribution in order to support funding costs optimisation AED Bn CASA AED Bn +10% qoq, +40% yoy +17% qoq, +45% yoy CASA% 14.9 34% 36% 34%
Slide 11: Gross NPL ratio further improves to 3.4% from 3.9%
Gross NPL ratio further improves to 3.4% from 3.9% at end-FY’24 and 4.8% a year ago, 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 NP
Slide 12: Robust capital position and improved shareholder returns; upcoming rights issue
Robust capital position and improved shareholder returns; upcoming rights issue will boost capital for further growth and enhance resilience to unforeseen macroeconomic shocks Deploying capital towards balance sheet growth (RWA) to enhance organic Improved shareholder returns capital generation capa
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 We remain cautiously optimistic on the outlook for FY 2025: technology economic sentiment • positive GDP growth1, further picking up pace ahead, with strong contribution from non-oil sectors regulations • although, geopolitic
Slide 14: Appendix
Appendix
Slide 15: Summary financials – Income statement and related ratios
Summary financials – Income statement and related ratios %chg %chg Income statement highlights (AED Million) Q1'25 Q1'24 Q4'24 vs Q1'24 vs Q4'24 Net Interest Income 117 132 (11) 113 4 Non-Interest Income 48 31 53 41 18 Total Income 165 163 1 154 8 Operating Expenses (88) (78) 13 (94) (7) Opera
Slide 16: Summary financials – Balance sheet and related ratios
Summary financials – Balance sheet and related ratios %chg %chg Balance sheet highlights (AED Billion) Mar-25 Mar-24 Dec-24 vs Mar'24 vs Dec'24 Total Assets 23.4 17.9 31 21.5 9 Loans, advances & Islamic financing 12.5 9.5 31 11.5 8 Investments 6.8 5.3 29 6.0 13 Customers’ deposits 14.9 10.7 40 13.6
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 Your Trusted Partner in UAE since 1975 ir@uab.ae