UNB earns Dh475 million net profit in first quarter

ABU DHABI - Union National Bank’s consolidated profit rose 3.3 per cent year on-year to Dh474.8 million in the first quarter of 2012 on better interest incomes.

By (Staff Report)

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Published: Tue 24 Apr 2012, 11:12 PM

Last updated: Sat 4 Apr 2015, 7:20 AM

The operating profit for the first quarter of the year grew 12.2 per cent year-on-year to Dh596.9 million, driven by a growth in the operating income.

The operating income for the three month period ended 31 March 2012 of Dh781.7 million was up by 10.9 per cent compared to that for the prior period led by an increase in net interest income and net income from Islamic financing which rose to Dh618.2 million, an increase of 16.2 per cent over the same period a year ago.

The increase in net interest income and net income from Islamic financing was principally due to the higher net interest margin and growth in the earning assets.

However, the non-interest income decreased by 5.2 per cent year-on-year to Dh163.4 million in the first quarter on account of lower net fee and commission income due to the implementation of the Central Bank of the UAE regulations on lending to individual customers that were introduced last year effective from 1 May 2011.

Mohammad Nasr Abdeen, chief executive officer, Union National Bank said the results “are a testimony to the consistent and sustainable performance” of the Union National Bank Group over the last many years.

Notwithstanding the ongoing uncertain global economic environment, the strategic focus on the core businesses has ensured that the Union National Bank Group continues to provide acceptable returns to the shareholders over the longer term”.

“The very comfortable liquidity and the solid capital adequacy position would enable the Group to support lending activity as the economic recovery gathers momentum in 2012 and beyond”, the chief executive said. The continuing focus on credit quality, led to a measured increase of 3.2 per cent year-on-year in loans and advances to Dh58.1 billion

The customers’ deposits reached Dh63.4 billion in the quarter up against Dh60.3 billion, an increase of 6.4 per cent compared to the prior period.

“The Group continued to have a very comfortable liquidity position with liquid assets constituting 21.5 per cent of the total assets as at 31 March 2012,” the bank in a statement.

The loan to deposit ratio improved to 91.6 per cent in the three months period from 95.5 per cent as at December 31, 2011.

The total assets of the Group increased to Dh86.1 billion against Dh82.5 billion as at December 31 2011.

The ratio of non-performing loans to gross loans and advances was 4.1 per cent as at 31 March 2012 against 3.7 per cent as December 31, 2011.


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