The Banking Executive Magazine - September Issue 2022

UAE Banks continue to spend more and corpo- rate sector will also benefit with the government injection into the econ- omy,” he said. About financing to small and medium enterprises and startups, he said UAB is open to all the opportu- nities in the UAE. “We want to bank all the bankable sets of clients in the UAE. Whether it is retail, SME or wholesale, we are open to all sectors,” he said. “How much we do in every segment is a function of our risk appetite and obviously our own internal return on capital hurdles and strategic plan. But, we will continue to remain open to all available opportunities in the market,” he added. UAB recorded 209 per cent year-on- year growth in first-half net profits in 2022 as the bank strengthens its core business, streamline the cost base and maintain key banking funda- mentals. After top level changes in the management, the bank shrank provisions by 52 per cent in first half that paved the way for strong profit growth. Shirish is an industry veteran with over 30 years of experience in cor- porate banking, credit risk and risk management. His appointment as CEO comes as part of the bank's ef- forts to deploy its digital transforma- tion strategy, explore new streams of business development opportunities and maximise value to shareholders. Shirish is keen to accelerate the bank's digital transformation strategy that aims to enhance customer expe- rience, lower transaction costs and contribute significantly to the ad- vancement of banking activity in the UAE. “Technology usage is inevitable. Technology is something that you factor into every single product strat- egy, whether big or small.” “So, we will continue to invest wisely, invest in relevant technology for customer convenience and im- proving the efficiency of the existing process,” Shirish said. In reply to a question about cyberse- curity, the UAB chief said introduc- tion of technology may increase the risk of cybersecurity. “We keep abreast with the latest trends in technology and cybersecu- rity and we have to always be one step ahead,” he said. Shirish said UAB will continue to hire more staff if it is required in line with the bank's policy to bring more value to shareholders. “The bank will always look to deploy more and more additional resources wherever we see variable revenue opportunities. So, wherever there is a possibility of hiring the right people who help us enhance business, we will remain alive to that,” he said. Shirish said the UAE banking sector outlook is bright as the government is taking various measures to sustain economic growth in coming years. “The government has introduced business and visa reforms to make the UAE one of the most attractive destinations for financial capital and human resources. It is also planning to allocate additional funds for devel- oping industries and promoting man- ufacturing in the country. We're talking serious levels of capital ex- penditures and that is a great news for the bank. So, I’m very very opti- mistic,” he said. To a question about the challenges for UAB, he said the number one challenge is competition. “For any bank, I think global and re- gional disruptions and competitive threats are the key challenges that we face,” he said. Shirish said interest rates are ex- pected to continue upward trend in coming months and it will increase cost of doing business in line with the international markets. “Higher interest rates will increase cost of borrowing and may have an adverse impact on some sectors and consumer spending,” he said, and adding that the central banks world- wide actively working to control in- flation – a key objective for increasing interest rates. “I think it's very important that infla- tion is controlled. Once you have in- flation under control, then interest rates will come down, spending will gradually increase and economies will be back on growth path again. And all prices need to remain in a kind of a sweet spot, which are not too low and not too high, so that it creates the right kind of balance for growth,” Shirish concluded. ISSUE 165 SEPTEMBER 2022 the BANKING EXECUTIVE 21