United Arab Bank's (UAB) earnings swelled as its loan book grew by the most in two years.
The Sharjah-based lender, which expects by January to have doubled its branch network compared with two years ago, reported net profits for the first half of Dh260 million.
The results are equivalent to net profits of Dh139.8m for the second quarter, an increase of 18.2 per cent. "Strong growth has been generated by each of our business units," said Paul Trowbridge, the bank's chief executive.
"Loans and advances, customer deposits and total assets have all more than doubled in the last two years. With our expanding branch network and customer-centric approach, we are well positioned to continue on our current trajectory."
It is the first UAE lender to report earnings for the second quarter, which is expected to generate significant profit growth for the Emirates' biggest financial firms. UAB, which avoided the wave of bad debts that hobbled rivals following Dubai's property crash, has been able in the meantime to capitalise on the weaknesses of other players in the sector despite a difficult mortgage market.
The bank's loans grew by 13.3 per cent during the quarter to Dh13.25 billion, the fastest rate of growth since the third quarter of 2011.
During April and May, banks across the UAE's financial system increased lending by just 0.4 per cent to Dh1.13 trillion, according to the Central Bank. Lending data for June is yet to be released.
UAB also raked in large quantities of deposits, which rose 11.2 per cent during the second quarter to Dh12.4bn.
The bank, which is 40 per cent owned by Commercial Bank of Qatar, has targeted rapid growth of its loan book by undercutting rates offered by big international lenders on mortgages.
Levels of outstanding mortgages have fallen across the sector during each of the past three quarters to March this year, which Independent Finance, a mortgage adviser, attributes to high levels of remortgaging at cheaper rates and large numbers of cash buyers of distressed properties clearing existing mortgage stock. However, UAB's rapid expansion may be more moderate in the months ahead. In an interview with The National last month, Mr Trowbridge said the bank would aim to "consolidate" its growth during the next few quarters and be more selective about its lending.
"We don't necessarily need to go for growth in the next couple of years," he said.
So far this year, the bank's shares are up 64.2 per cent to Dh5.06 each, outperforming gains on the Abu Dhabi Securities Exchange General Index and also the ADX Banks Index which has gained 48.3 per cent during the same period.
National Bank of Abu Dhabi and Emirates NBD are expected to be among the best performing banks this quarter. Analysts estimate each lender will generate profit growth of 23 per cent during the period.
Elsewhere, Qatar Islamic Bank reported a dip in net profits for the second quarter. Net profits fell 2.9 per cent to 339m riyals compared with the corresponding period a year earlier. The Doha-based lender attributed the earnings to high investment income offset by lower financing income and fees due to margin compression.
ghunter@thenational.ae
TEACHERS' PAY - WHAT YOU NEED TO KNOW
Pay varies significantly depending on the school, its rating and the curriculum. Here's a rough guide as of January 2021:
- top end schools tend to pay Dh16,000-17,000 a month - plus a monthly housing allowance of up to Dh6,000. These tend to be British curriculum schools rated 'outstanding' or 'very good', followed by American schools
- average salary across curriculums and skill levels is about Dh10,000, recruiters say
- it is becoming more common for schools to provide accommodation, sometimes in an apartment block with other teachers, rather than hand teachers a cash housing allowance
- some strong performing schools have cut back on salaries since the pandemic began, sometimes offering Dh16,000 including the housing allowance, which reflects the slump in rental costs, and sheer demand for jobs
- maths and science teachers are most in demand and some schools will pay up to Dh3,000 more than other teachers in recognition of their technical skills
- at the other end of the market, teachers in some Indian schools, where fees are lower and competition among applicants is intense, can be paid as low as Dh3,000 per month
- in Indian schools, it has also become common for teachers to share residential accommodation, living in a block with colleagues
THE BIO: Martin Van Almsick
Hometown: Cologne, Germany
Family: Wife Hanan Ahmed and their three children, Marrah (23), Tibijan (19), Amon (13)
Favourite dessert: Umm Ali with dark camel milk chocolate flakes
Favourite hobby: Football
Breakfast routine: a tall glass of camel milk
More from Neighbourhood Watch:
Tamkeen's offering
- Option 1: 70% in year 1, 50% in year 2, 30% in year 3
- Option 2: 50% across three years
- Option 3: 30% across five years
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
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Bombshell
Director: Jay Roach
Stars: Nicole Kidman, Charlize Theron, Margot Robbie
Four out of five stars
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Red flags
- Promises of high, fixed or 'guaranteed' returns.
- Unregulated structured products or complex investments often used to bypass traditional safeguards.
- Lack of clear information, vague language, no access to audited financials.
- Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
- Hard-selling tactics - creating urgency, offering 'exclusive' deals.
Courtesy: Carol Glynn, founder of Conscious Finance Coaching
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The specs
Engine: 2.2-litre, turbodiesel
Transmission: 6-speed auto
Power: 160hp
Torque: 385Nm
Price: Dh116,900
On sale: now
Day 5, Abu Dhabi Test: At a glance
Moment of the day When Dilruwan Perera dismissed Yasir Shah to end Pakistan’s limp resistance, the Sri Lankans charged around the field with the fevered delirium of a side not used to winning. Trouble was, they had not. The delivery was deemed a no ball. Sri Lanka had a nervy wait, but it was merely a stay of execution for the beleaguered hosts.
Stat of the day – 5 Pakistan have lost all 10 wickets on the fifth day of a Test five times since the start of 2016. It is an alarming departure for a side who had apparently erased regular collapses from their resume. “The only thing I can say, it’s not a mitigating excuse at all, but that’s a young batting line up, obviously trying to find their way,” said Mickey Arthur, Pakistan’s coach.
The verdict Test matches in the UAE are known for speeding up on the last two days, but this was extreme. The first two innings of this Test took 11 sessions to complete. The remaining two were done in less than four. The nature of Pakistan’s capitulation at the end showed just how difficult the transition is going to be in the post Misbah-ul-Haq era.
Results:
First Test: New Zealand 30 British & Irish Lions 15
Second Test: New Zealand 21 British & Irish Lions 24
Third Test: New Zealand 15 British & Irish Lions 15
The bio
Who inspires you?
I am in awe of the remarkable women in the Arab region, both big and small, pushing boundaries and becoming role models for generations. Emily Nasrallah was a writer, journalist, teacher and women’s rights activist
How do you relax?
Yoga relaxes me and helps me relieve tension, especially now when we’re practically chained to laptops and desks. I enjoy learning more about music and the history of famous music bands and genres.
What is favourite book?
The Perks of Being a Wallflower - I think I've read it more than 7 times
What is your favourite Arabic film?
Hala2 Lawen (Translation: Where Do We Go Now?) by Nadine Labaki
What is favourite English film?
Mamma Mia
Best piece of advice to someone looking for a career at Google?
If you’re interested in a career at Google, deep dive into the different career paths and pinpoint the space you want to join. When you know your space, you’re likely to identify the skills you need to develop.
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
Results
Final: Iran beat Spain 6-3.
Play-off 3rd: UAE beat Russia 2-1 (in extra time).
Play-off 5th: Japan beat Egypt 7-2.
Play-off 7th: Italy beat Mexico 3-2.
The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
More coverage from the Future Forum
Libya's Gold
UN Panel of Experts found regime secretly sold a fifth of the country's gold reserves.
The panel’s 2017 report followed a trail to West Africa where large sums of cash and gold were hidden by Abdullah Al Senussi, Qaddafi’s former intelligence chief, in 2011.
Cases filled with cash that was said to amount to $560m in 100 dollar notes, that was kept by a group of Libyans in Ouagadougou, Burkina Faso.
A second stash was said to have been held in Accra, Ghana, inside boxes at the local offices of an international human rights organisation based in France.
