News Column

UNB earnings jump 125% in Q4 on better revenues

February 2, 2014

Union National Bank's (UNB) earnings in the fourth quarter of 2013 jumped 125 per cent year-on-year to Dh306 million on better revenues. The bank's net profit grew nine per cent to Dh1.748 billion in the financial year 2013 against Dh1.602 billion. The operating income for 2013 was Dh3.212 billion, up by four per cent year-on-year, which was principally driven by a measured growth in net interest income and non-interest income rising by 10 per cent in 2013. The net interest income and net income from Islamic financing, registered an increase of three per cent year on-year in 2013 to reach Dh2.603 billion. Mohammad Nasr Abdeen , chief executive officer, Union National Bank said that in this period of improving economic outlook, the UNB group is firmly positioned to partner with the customers by offering a wide range of customised financial products and services well supported by an ever expanding branch network and technologically superior infrastructure, with the enduring emphasis being on achieving the highest level of customer centricity and satisfaction. The group continued to actively manage its liquidity position, funding profile and associated costs so as to benefit from the prevailing low benchmark interest rates. In 2013, the net interest margin reduced by 12 basis points to 3.08 per cent, the impact of which was fully offset by an increase in interest earning assets. The increase in non-interest income for 2013 was mainly due to an increase in net fees and commission income which was up strongly by 15 per cent in 2013 to Dh502 million partially offset by the lower gains on trading and non-trading financial instruments, which decreased by 43 per cent in 2013 to Dh51 million. The fair value loss on investment properties reduced in 2013 at the back of improved real estate prices. The bank's net loans and advances increased by five per cent in 2013 to reach Dh60 billion as at December 31, 2013 . The loan growth was witnessed across multiple sectors like the consumer, energy, manufacturing and trade sector. Customers' deposits recorded a growth of three per cent reaching Dh65.1 billion as at December 31, 2013 . The ratio of non-performing loans and advances to gross loans and advances improved by 40 basis points to 4.3 per cent. The general provision was Dh1.1 billion as at December 31, 2013 represented 1.41 per cent of the credit risk weighted assets, against a Central Bank of the UAE requirement of 1.5 per cent to be met by December 31, 2014 . During the year, the Group expanded its branch network by adding fourteen new branches, enhancing its footprint to over 100 branches and office in the UAE , China , Egypt, Kuwait and Qatar . The Board of Directors has recommended a dividend distribution of 15 per cent cash and five per cent bonus shares.

For more stories on investments and markets, please see HispanicBusiness' Finance Channel

Source: Khaleej Times (United Arab Emirates)

Story Tools