Moody’s Scores upgrades United Arab Financial institution’s deposit scores to Baa2

United Arab Financial institution (UAB) introduced that the worldwide credit standing company Moody’s has upgraded the Financial institution’s long-term and short-term overseas and native forex deposit scores to Baa2/P-2 from Baa3/P-3, and assigned a steady outlook. The company additionally upgraded the Financial institution’s Baseline Credit score Evaluation (BCA) to ba2 from ba3, and its Adjusted BCA to ba1 from ba2.

Moody’s confirmed that the improve displays the Financial institution’s continued progress in implementing its new technique, which has resulted in stronger credit score metrics throughout asset high quality, profitability, and solvency. The company famous that UAB’s non-performing mortgage (NPL) ratio decreased considerably to 2.2% as of June 2025 in comparison with 5.0% on the finish of 2023, supported by efficient credit score danger administration and the exercise of drawback loans. In the meantime, the loan-loss reserves protection ratio improved to 148%, in comparison with 98% in December 2020.

Moody’s additional highlighted that UAB’s current profitable rights problem of AED 1.03 billion has enhanced the Financial institution’s loss-absorbing capability and helps its sustainable development plans. The scores company additionally expects UAB to maintain sturdy profitability because the Financial institution continues to execute its development technique and diversify its income streams.

Commenting on the announcement, Mr. Shirish Bhide, Chief Government Officer of UAB, mentioned: “We’re delighted that the progress achieved by the Financial institution is being acknowledged by main international ranking companies. Moody’s improve of UAB’s deposit scores by two notches within the final two years displays the numerous progress we now have made in strengthening our monetary place and executing our new technique. This achievement is a testomony to our dedication to sustainable development and to reinforcing the boldness of our purchasers and shareholders. We’re transferring ahead to broaden our enterprise and diversify our companies, supported by a stable capital base and prudent danger administration, which reinforces our means to face challenges and switch them into alternatives.”

United Arab Financial institution lately introduced a internet revenue of AED 208 million for the primary half of 2025, a 50% enhance in comparison with the earlier yr, supported by a rise in complete earnings to AED 374 million and an 11% development in belongings. These outcomes replicate the Financial institution’s sturdy monetary place, asset high quality, and capital power, underpinning its readiness to proceed rising and delivering sustainable worth to its shareholders and purchasers.