Abu dhabi: United Arab Bank (UAB) reported its financial results for the full year ended 31st December 2025, posting a net profit of AED438 million for FY 2025, compared to AED301 million in FY 2024, representing a 45% year-on-year increase. The strong performance reflects the successful execution of the Bank's strategy, supported by significant asset expansion, disciplined cost management, and prudent risk management practices.
According to Emirates News Agency, total income increased by 31% year-on-year to AED797 million, driven by strong momentum across core businesses, including a 56% growth in non-interest income and a 24% increase in net interest income. Total assets grew by 26% year-to-date to AED27.0 billion, underpinned by a 26% rise in loans, advances, and Islamic financing, and a 31% increase in the investment portfolio, while customer deposits surged by 31% year-to-date, reflecting growing customer confidence and a strengthened funding base.
Asset quality remained resilient throughout the year, supported by strong recoveries that resulted in a net reversal of impairment charges of AED51 million. Liquidity and funding ratios continued to remain comfortably above regulatory thresholds. During FY 2025, the Bank further strengthened its capital position by successfully raising AED1.03 billion in capital via a fully subscribed rights issue. In addition, UAB concluded an AED1.0 billion senior unsecured dual-tranche term loan facility in the final quarter of the year, enhancing funding flexibility and supporting future growth ambitions.
UAB's credit profile strengthened further in 2025, reflecting improved financial metrics and a robust risk framework. Moody's upgraded the Bank's deposit ratings to Baa2, while Fitch Ratings and Capital Intelligence upgraded UAB's Viability and Core Financial Strength ratings, respectively, by one notch each. All rating agencies maintain a 'Stable' outlook, underscoring confidence in the Bank's strategic direction, enhanced capital position, and overall financial resilience.
Commenting on the Bank's performance, Sheikh Mohammed bin Faisal bin Sultan Al Qassimi, Chairman of the Board of Directors of United Arab Bank, expressed that 2025 was a defining year for the Bank, marking its Golden Jubilee and heralding a new chapter in the Bank's evolution with the unveiling of its refreshed brand identity. It proved to be a transformative period for UAB, reinforced by decisive strategic initiatives and robust financial performance. The Bank's priorities include deepening customer relationships, accelerating digital transformation, and delivering sustainable, long-term value for shareholders while contributing to the UAE's economic and social development.
Shirish Bhide, Chief Executive Officer of United Arab Bank, highlighted the Bank's continued investments in people, products, systems, and processes, which supported its strong performance in 2025. The year marked a milestone in the Bank's 50-year journey, celebrated with the launch of a new brand identity. The Bank made significant advances in its digital transformation journey, including the launch of a revamped mobile banking app and enhancements to digital onboarding journeys and supply chain finance capabilities. Looking ahead, UAB remains focused on delivering strong returns, driving innovation, and raising the bar on customer service excellence.