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UAB Increases Share Capital by 25 Per Cent

DUBAI - The United Arab Bank on Wednesday said it was boosting its share capital by 25 per cent to Dh996.401 million. The move was consequent to a decision taken by shareholders of the Sharjah-based bank at an annual general meeting on Wednesday to issue scrip bonus shares constituting 25 per cent of the bank’s capital.

“The bank was able to achieve excellent results in 2008 in terms of profitability and growth despite the unfavourable environment in the local and regional financial markets,” Chairman of United Arab Bank, or UAB, Shaikh Faisal bin Sultan bin Salem Al Qassimi, said in a statement.

The bank’s operating income increased by 23 per cent from Dh324.1 million in 2007 to Dh397.4 million in 2008 while the net profit rose by 18 per cent to Dh250.2 million from Dh211.4 million in 2007. Earnings per share grew by 19 per cent to Dh0.31 as against Dh0.26 in the previous year. “The bank continued its policy of steady growth, focusing on diversification and broadening the customer base while aligning the marketing strategy to the business climate,” it said.

The bank claimed that it maintained quality assets, and improved the quality of customer services. The bank also ensured that shareholders’ and depositors’ funds were utilised for better returns from the available resources, the statement said.

The bank’s total assets rose by 22 per cent to Dh7.56 billion, loans and advances increased by 40 per cent from Dh3.94 billion to Dh5.51 billion, customers’ deposits grew by 21 per cent to Dh4.97 billion and deposits from banks and financial institutions rose by 45 per cent to Dh1.01 billion. Shareholders’ funds rose to Dh1.34 billion from Dh1.28 billion in 2007.

The bank said it maintained its policy of continuous appraisal of the lending portfolio to ensure adequate coverage for losses against customers’ exposures. “The level of provisioning ensured that all doubtful loans and advances were appropriately provided for in accordance with industry best practice. As a result, net provisions made for doubtful loans and advances.”

UAB said it was committed and prepared for the implementation of Corporate Governance requirements specified by Basel II.

The bank has aligned with the implementation schedule for Corporate Governance Regulations as recommended by the Emirates Securities and Commodity Authority.

“We remain focused on strengthening all of our core businesses, developing synergies with our strategic shareholder, The Commercial Bank of Qatar, while sustaining liquidity and 
capital strength.

The bank is well positioned in the market and we are determined to grow our business, seize new opportunities that may arise, and deliver long-term value to our shareholders,” said the bank’s new Chief Executive Officer Paul Trowbridge.

The bank said it remained committed to recruit UAE nationals. By the end of 2008, UAE nationals constituted 34 per cent of total staff number.

issacjohn@khaleejtimes.com