United Arab Bank reports Dh201m H1 profit as assets climb to Dh28bn
The Sharjah-based bank's second-quarter profit jumped 68% as lending rose 14% and deposits increased 16%, with the capital adequacy ratio reaching 21.1%, well above regulatory requirements.
Strong quarterly and half-year results
United Arab Bank reported net profit of Dh201 million for the first half of 2026, driven by higher income and double-digit growth across lending, investments and customer deposits.
The Sharjah-headquartered bank's second-quarter profit reached Dh126 million, rising 68% from the previous quarter and 19% year-on-year. The result continues a strong growth trajectory following full-year 2025 net profit of Dh438 million, which represented a 45% increase from Dh301 million in 2024.
Total operating income increased 13% year-on-year to Dh421 million, supported by a 15% rise in net interest income as the bank expanded its asset base. Operating profit rose 16% as income growth outpaced expense increases. The strong income performance came despite sector-wide margin pressure, with UAE banks' net interest margins declining to 2.37% in the first quarter of 2026 from 2.47% in the fourth quarter of 2025, reflecting three policy rate cuts between September and December 2025.
Asset and lending growth
Total assets reached Dh28 billion at the end of June, up 16% from a year earlier, as the bank participated in a broader expansion across the UAE banking sector. The sector's total assets climbed to Dh5.57 trillion in April 2026, reflecting continued growth momentum.
Loans, advances and Islamic financing increased 14% to Dh15.3 billion, while the investment portfolio grew 25% to Dh8.3 billion. The lending expansion aligned with strong credit demand across UAE banks, which recorded 5.8% quarterly lending growth in the first quarter of 2026, the fastest pace in recent quarters.
Customer deposits rose 16% to Dh18.2 billion. Current and savings account balances increased 27% and represented 40% of total deposits. The deposit growth outpaced the sector's first-quarter deposit growth rate of 3.8%.
Shirish Bhide, Chief Executive Officer of United Arab Bank, said the performance demonstrated that investments across the bank were translating into tangible business momentum. He cited growth in operating income and continued expansion across lending, deposits and the investment portfolio, together with healthy asset quality and capital levels.
Asset quality remains stable
The bank's non-performing loan ratio stood at 2.7%, slightly above the UAE banking sector average of 2.3% reported in the first quarter of 2026. Provision coverage reached 101%, close to the sector average of 110%.
United Arab Bank recorded net impairment charges of Dh6 million during the period, compared with a net reversal of Dh32 million a year earlier when the result benefited from one-off recoveries and writebacks.
Annualised return on shareholders' equity stood at 11.6%.
Capital position strengthens
The bank maintained a capital adequacy ratio of 21.1% and a Common Equity Tier 1 ratio of 17.2%, both significantly above regulatory requirements. The UAE banking sector's capital adequacy ratio stood at 16.8% in the first quarter of 2026, above the minimum requirement of 13% which includes a 2.5% Capital Conservation Buffer. A countercyclical capital buffer of 0.50% on private sector credit exposures became effective on January 1, 2026.
The bank's strong capital position follows a rights issue completed in 2025 that raised Dh1.031 billion, increasing issued capital from Dh2.062 billion to Dh3.093 billion at Dh1 per share.
The advances-to-stable-resources ratio stood at 73%, while the eligible liquid asset ratio reached 17%.
Digital transformation continues
United Arab Bank, which was established in 1975 and operates through a network of 20 branches across the UAE, said it would continue investing in digital services, payment solutions and technology partnerships as part of a transformation programme that began in 2025. The Commercial Bank of Qatar holds a 40% stake in the bank as a strategic shareholder.
Bhide said the bank was improving the way clients engage with United Arab Bank through enhanced digital capabilities, modern payment solutions and technology-led innovation. These investments aim to simplify banking, improve responsiveness and enable relationship teams to deliver more relevant and personalised financial solutions across every client segment.
