The profit for the second quarter of 2014 was Dh520 million, an increase of 6 per cent compared to Dh492 million reported in the second quarter of 2013 and was up by 2 per cent compared to the first quarter of this year.
The operating income for the six month period of 2014 was Dh1.59 billion, slightly lower compared to Dh1.64 billion during the same period last year. The net interest income and net income from Islamic financing for the first half of 2014 was Dh1.27 billion compared to Dh1.32 billion, impacted mainly by a reduction in the net interest margin.
The bank said competitive banking pressures led to a reduction in the net interest margin to 2.86 per cent for the first half of this year compared to 3.2 per cent during the same period last year.
The non-interest income remained relatively stable at Dh323 million compared to Dh327 million in the first half of last year with the net fee and commission income up by 15 per to Dh283 million compared to Dh246 million in same period last year.
UNB's total assets grew by 15 per cent year-on-year to Dh92.2 billion. The loans and advances increased to Dh62 billion as at
"After a decent performance in the first quarter of 2014, UNB's credit growth cooled down in the second quarter of 2014 with a mere 1 per cent quarter on quarter expansion. We expected the bank to continue its push into the retail and SME segment, similar to trends seen in the first quarter of 2014 yet we believe management has opted to preserve margins during the quarter in favour of loan growth,"
Bank's asset quality measures have continued to improve with the NPLs to gross loans ratio declining to 3.9 per cent at the end of the first half of this year compared to 4.3 per cent at the close of last year. The loan loss coverage as at
"The asset quality continues to improve with the non-performing loans reducing both on an absolute basis as also relative to the gross loans, with the coverage being maintained at adequate levels," Abdeen.
The annualised return on average equity, excluding Tier 1 capital notes was 15.2 per cent for the first half of the year and the annualised return on average assets was 2.3 per cent for the first half of the year.
Most Popular Stories
- Doctor Who Christmas Episode Begins Production
- HCL America Adding 1,200 IT Jobs
- Medical Mfg. Jobs Coming to Dayton
- Michael Jackson, Freddie Mercury on Previously Unreleased Queen Cut
- Longtime Unemployed to Get Help in Las Vegas
- SpaceX Aims for Predawn Launch on Saturday
- Women Key to Democratic Party: Clinton
- U.S. Chamber Caught Up in Tax Inversion Question
- Feds Won't Say How Many Border Crossers Jailed
- Christie Didn't Order Bridge Shut Down, Feds Say