A cash dividend of 20% of paid up capital amounting to dH199.3m and a scrip dividend of 10% of paid up capital amounting to Dh99.6m are proposed by the directors for approval by the Bank’s shareholders, subject to the prior approval of the Central Bank.
“UAB’s record full year net profits and performance are testament to the bank’s ability to build on the momentum of past years, achieve continued growth and generate value for our shareholders. The bank’s sustained growth and strong traction in a highly competitive market can be attributed to the dynamic strategy and effective leadership that is focused on delivering to all stakeholders,” the Bank’s Chairman of the Board of Directors, Sheikh Faisal Bin Sultan Bin Salem Al Qassimi, said.
“I am very pleased with our 2013 results. This strong finish to an amazing year is a clear demonstration of the consistency and discipline in the execution of our strategy. Backed by strong fundamentals and the commitment of our management team in an improving economic landscape, the bank was successful in growing the loan book and customer deposits significantly. We continue to reap the benefits of our strategic alliance with Commercial Bank of Qatar. Our associations with National Bank of Oman and Alternatifbank in Turkey have positioned us well for future growth and created opportunities for integrated services across the GCC and Turkey,” Paul Trowbridge, the bank’s Chief Executive Officer, said.
In the twelve months ended 31 December 2013, Customer Loans and Advances increased by 40% to Dh15.29b, from Dh10.88b as at 31 December 2012; while Customer Deposits recorded equally impressive growth to reach Dh15.03b, surging 49% in the same period. This growth ensures the bank will continue to benefit from a solid and sustainable platform to support future expansion plans moving forward.
The bank recorded operating profit of Dh721m, a 36% increase over profits of Dh531m reported in 2012. Total Income also improved at the same rate to Dh1.04b, with robust underlying performance across both Net Interest Income and Other Income, up 39% and 26% respectively versus prior year.
Provision charges across the full year were Dh168m, compared to Dh122m for the same period in 2012. The bank continues to take a prudent and proactive approach to risk management, with the loan loss coverage ratio standing at 117% and in full compliance with UAE Central Bank regulations.
Even after its impressive performance in recent years, the bank is relentlessly striving to build upon its fundamentals to support further growth. UAB’s successful network expansion programme continued in 2013, with the bank now benefiting from 25 fully operational branches across the UAE. Going forward UAB will continue to invest in its people and infrastructure to ensure it remains the bank of choice for its customers.
“Our 2013 results are outstanding. With a customer-centric winning strategy we aim to find innovative ways to exceed our customers’ expectations and provide them with exceptional customer service. By truly understanding what our customers want from a bank we are able to fulfil their needs in meaningful ways. With this is in mind, we are certainly set to become the bank of choice for customers in the UAE,” the CEO added.