United Arab Bank, based in Sharjah, said it swung to a profit in the third quarter as provisions for bad debt fell sharply after a loss in the same quarter last year.
The bank, which has been undertaking a transformation plan that includes cutting costs and exiting non-core activities, said profit rose to Dh16.9 million in the three months to the end of September from a loss of Dh272.6m in the same period last year as money set aside to cover bad loans fell to Dh104.3m from Dh465.8m.
“For UAB, our low-risk and efficient UAE-focused business model, together with the simplification and transformation of the bank, positions us well to continue doing the right thing for our customers and deliver sustainable returns for our shareholders,” said Sheikh Faisal Al Qassimi, the bank’s chairman.
UAB booked a total loss of Dh166m last year as impaired loans piled up after years of risky lending to SMEs unravelled in the economic downturn that was triggered by a crash in the price of oil.
Cracks in UAB’s operations appeared in earnest during the third quarter of last year, when the bank lost Dh272.6m compared with a profit of Dh169.2m in the same quarter of 2014.
mkassem@thenational.ae
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