United Arab Bank (UAB) yesterday reported Dh330 million net profits for 2011, up 7.1 per cent over the Dh308 million earned in 2010. UAB\'s assets reached Dh10.8 billion, a 40 per cent increase over the Dh7.7 billion achieved the previous year. This growth in assets was supported by a 72 per cent growth in customer deposits in 2011 to Dh7.3 billion, compared to Dh4.3 billion in 2010. The bank reported a 46 per cent increase in loans and advances from Dh5.5 billion in 2010 to Dh8.1 billion last year. The bank\'s retail and Islamic business volumes grew by more than 85 per cent last year with the portfolio exceeding Dh2 billion. UAB\'s core activity has traditionally been commercial and corporate business. Last year corporate loans exceeded Dh6 billion, up 33 per cent over those in 2010. UAB\'s capital adequacy ratio in December 2011 exceeded 20 per cent. In terms of liquidity, its advances to stable resources ratio was 87 per cent compared to 86 per cent in 2010. UAB\'s operating profit before loan loss provisions exceeded Dh400 million as it made Dh70.5 million provisions for credit losses. The bank said at the end of 2011 its non-performing loans constituted only 1.6 per cent of total loans and advances compared to 3.2 per cent in 2010. \"UAB remains committed to a prudent policy of provisioning in accordance with the guidelines issued by the Central Bank of the UAE. \"Consequently, UAB\'s management ensured that its specific and collective provisions meet all regulatory requirements,\" said Paul Trowbridge, Chief Executive Officer. Expansion The bank has continued its branch expansion programme, opening outlets in Sharjah, Fujairah, Ras Al Khaimah and Abu Dhabi. Four more branches are also scheduled to open early this year, and the renovation of all existing branches has been completed. The bank also announced yesterday the purchase of a new head office building in Sharjah. \"The new 27-storey tower overlooking Al Buhaira Corniche will reflect the modern face of UAB. This is another landmark in the bank\'s development and demonstrates the need to scale up our activities in order to provide the best level of service and support to our loyal customers,\" said Trowbridge. The board has proposed a cash dividend of 20 per cent of paid up capital in 2012, subject to approval of the UAE Central Bank and the bank\'s shareholders.