Earnings release for 2014


EARNINGS RELEASE FOR 2014
Prior to approval by the General Meeting of Shareholders

The Board of Directors met on March 12th, 2015 and approved the consolidated balance sheet total which amounted to €1.638 billion as at December 31, 2014, down 4.6% from 2013. On the same date, the Board of Directors also approved the consolidated net profit of €2.83 million, compared to
€20.2 million in 2013.

The share of minority interests amounted to € -0.07 million.

The 2014 financial year was characterized by a weak environment in several respects:
• The economic and political situation in certain countries, in which we historically do business, continued to deteriorate,
• Considerable compliance constraints forced us to cease operations with certain counterparties and prevented us from handling certain potentially risky products.

In this context, continuing to post positive earnings represents a solid performance, even if the net earnings budgeted for 2014, i.e. €7.425 million, could not be achieved.

Our trade and cash assets, amounting to €1.6 billion, fell by 3.7% year-on-year due to a drop in activity caused by economic and political factors impacting some of our counterparties.
Nevertheless, trade resources are still our main source of financing. At end-December 2014, over 50% of these deposits originated from guarantees received from our counterparties for documentary credits confirmed by us.

The flow of documentary credits dropped to €10 billion from €12.8 billion in 2013 due to the cessation of operations mentioned above and the difficult situation facing some of our counterparties in the Arab world.

Earnings from commercial operations decreased by 20%, which directly correlates to the reduction in volume of activity and, as a result, our global NBI fell to €49.5 million compared with €59.6 million in 2013.

General expenses fell slightly year-on-year to €43.7 million.

The cost of risk was significantly limited during the financial year, resulting in a net reversal of provisions of €1.3 million.

Our solvency and liquidity ratios maintained satisfactory levels at 26.9% and 203% on average respectively for 2014.

For 2015, the political and economic outlook remains uncertain for a number of countries in the Arab world.

The medium-term development plan, drawn up in 2014 and approved by the Board of Directors in December 2014 will enable us, however, to diversify and grow our revenue sources whilst remaining focused on trade finance.

April 2015

EDITORIAL

U.B.A.F. S.A. is a French registered bank established in 1970. Its shareholders originate from 19 Arab countries along with Crédit Agricole Corporate & Investment Bank. U.B.A.F. activity focuses on financing the trade between Asia, Europe and the Middle East.

With its international network in Asia, in the Arab World and in Europe, U.B.A.F. has become a key player in the area of Trade Finance with Arab countries.

U.B.A.F. is able to meet with the needs of both importers and exporters and to secure the flows of payments and goods from industrial or trade commodity companies.



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