UAE Bank announces return on equity up 41%, net profits rise by 26.5 billion dirhams
The UAE Bank has announced a return on equity of 41%, while net profits went up by 26.5 billion dirhams.
According to the latest financial reports by the UAE Bank, its return on equity (ROE) hit 14.8% in 2023, which is the bank’s highest in over a decade, up from 10.5% in 2022.
Investors’ funds have been used and invested in ways that led to an increase in the value of their investments.
The bank also reported a net income climb from 74 billion dirhams in 2023, which is a 56% increase over the previous year.
Shareholders’ equity, on the other hand, expanded by 47 billion to 500 billion dirhams by the end of the 2023 financial year.
The bank deposits received from customers also surged by over 300 billion dirhams, with loan and banking service demand rising over the year under review.
Bad and doubtful loans from credit facilities dropped by 17.5 billion to 116.3 billion dirhams by the end of 2023. However, the bank revealed that its doubtful debt share decreased to 5.3% of the bank’s credit portfolio in 2023.
The higher return rates boost shareholder earnings from bank investments made with their funds and make the bank more attractive to shareholders, which is expected to increase the share price of the bank on the stock exchange.
The above success-radiating financial figures signify the banks’ increased profit distribution to shareholders relative to invested capital. The rising return rate is a positive health indicator for the bank, showing profit growth and financial efficiency.
