News Column

UNB more than doubles fourth-quarter net profit

February 3, 2014

The National staff

Union National Bank , an Abu Dhabi -based lender, said its full-year profit rose 9.1 per cent last year amid an economic rebound that boosted demand for personal and business loans. Net income rose to Dh1.75 billion from Dh1.6bn in 2012, UNB said yesterday. Net interest income increased to Dh2.27bn from Dh2.19bn, while net fee and commission income gained 15 per cent to Dh501.5 million, the bank said. The bank's board has recommended a 15 fils per share dividend and a 5 per cent bonus share distribution, subject to the approval of shareholders and the Central Bank . UNB follows a list of banks in the past week that have reported stellar earnings for last year amid rebounding consumer confidence, rising spending and surging property prices. For the fourth quarter, net profit more than doubled from a year earlier but still fell short of analysts' expectations. Net profit reached Dh306m in the three months to December 31 , up from Dh136m in the prior-year period. "The UNB group's focused approach in growing its business and franchise, both locally in the UAE and in the selected markets regionally, has led to the group building on its momentum over the previous years," said Mohammad Nasr Abdeen , the UNB chief executive. "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," he added. General provisions totalled Dh1.1bn for last year compared with Dh1bn in 2012, the bank said, without providing a breakdown for the quarter. Deposits at the bank grew 3 per cent to Dh65.1bn, while net loans and advances increased 5 per cent to reach Dh60bn at the end of December. * With agencies

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Source: National, The (United Arab Emirates)

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