UNB Q1 profit at Dh426M
dubai — Abu Dhabi-based Union National Bank’s (UNB) net profit for the first quarter of 2018 fell 6 per cent to Dh426 million from Dh452 million in the same period last year due to slow down in credit growth and increase in operating expenses.
The bank’s total assets grew 2 per cent to Dh106.3 billion while loans and advances fell 6 per cent to Dh69.1 billion. Customer deposits fell 1 per cent to Dh74.8 billion. Earnings per share fell to Dh0.14 at the end of March 31, 2018.
“The loan growth in the UAE banking has remained modest as credit demand remains soft. During this period, the group has maintained its strategy to pursue loan growth on a selective basis. Margins improved during the quarter as yield on assets increased more than offsetting the increase in cost of funds,” said Mohammad Nasr Abdeen, CEO of Union National Bank.
In the first quarter, the bank issued $500 million bond under its euro medium-term note programme to raise medium-term funding. The issue was more than 2 times subscribed. The bank’s operating income was marginally lower by 1 per cent to Dh883 million year-on-year mainly due to drop in non-interest income by 16 per cent while net interest income increased by four per cent.
Non-interest income decreased by 16 per cent to Dh205 million over the same period in 2017 mainly due to reduction in fees and commission income and decrease in net interest income, which was up by 4 per cent led by growth in the net interest margin on an increase in yield on earning assets partly offset by an rise in cost of funds.
— waheedabbas@khaleejtimes.com