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
RESULT
Fifth ODI, at Headingley
England 351/9
Pakistan 297
England win by 54 runs (win series 4-0)
The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
Company%20Profile
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Inside%20Out%202
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ALRAWABI%20SCHOOL%20FOR%20GIRLS
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Difference between fractional ownership and timeshare
Although similar in its appearance, the concept of a fractional title deed is unlike that of a timeshare, which usually involves multiple investors buying “time” in a property whereby the owner has the right to occupation for a specified period of time in any year, as opposed to the actual real estate, said John Peacock, Head of Indirect Tax and Conveyancing, BSA Ahmad Bin Hezeem & Associates, a law firm.
Company profile
Date started: 2015
Founder: John Tsioris and Ioanna Angelidaki
Based: Dubai
Sector: Online grocery delivery
Staff: 200
Funding: Undisclosed, but investors include the Jabbar Internet Group and Venture Friends
Book%20Details
%3Cp%3E%3Cem%3EThree%20Centuries%20of%20Travel%20Writing%20by%20Muslim%20Women%3C%2Fem%3E%3Cbr%3E%3Cstrong%3EEditors%3A%20%3C%2Fstrong%3ESiobhan%20Lambert-Hurley%2C%20Daniel%20Majchrowicz%2C%20Sunil%20Sharma%3Cbr%3E%3Cstrong%3EPublisher%3A%20%3C%2Fstrong%3EIndiana%20University%20Press%3B%20532%20pages%3Cbr%3E%3C%2Fp%3E%0A
The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
The Saga Continues
Wu-Tang Clan
(36 Chambers / Entertainment One)
Skewed figures
In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.
The specs
Engine: Dual 180kW and 300kW front and rear motors
Power: 480kW
Torque: 850Nm
Transmission: Single-speed automatic
Price: From Dh359,900 ($98,000)
On sale: Now
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
Company profile
Name: Thndr
Started: October 2020
Founders: Ahmad Hammouda and Seif Amr
Based: Cairo, Egypt
Sector: FinTech
Initial investment: pre-seed of $800,000
Funding stage: series A; $20 million
Investors: Tiger Global, Beco Capital, Prosus Ventures, Y Combinator, Global Ventures, Abdul Latif Jameel, Endure Capital, 4DX Ventures, Plus VC, Rabacap and MSA Capital
Fines for littering
In Dubai:
Dh200 for littering or spitting in the Dubai Metro
Dh500 for throwing cigarette butts or chewing gum on the floor, or littering from a vehicle.
Dh1,000 for littering on a beach, spitting in public places, throwing a cigarette butt from a vehicle
In Sharjah and other emirates
Dh500 for littering - including cigarette butts and chewing gum - in public places and beaches in Sharjah
Dh2,000 for littering in Sharjah deserts
Dh500 for littering from a vehicle in Ras Al Khaimah
Dh1,000 for littering from a car in Abu Dhabi
Dh1,000 to Dh100,000 for dumping waste in residential or public areas in Al Ain
Dh10,000 for littering at Ajman's beaches
