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UNB nine-month consolidated profit down 1.8%

Abu Dhabi-based Union National Bank (UNB) said on Thursday its consolidated profit for the nine -month period ended September 30 fell 1.8 per cent on year to Dh1,441 million.

In a statement, UNB Chief Executive Mohammad Nasr Abdeen said: “The financial performance was underpinned by consistent profitability, sustainable business growth, improving asset quality and strong liquidity and capital position.”

He further added that “The UNB Group has been significantly investing on growing its franchise, augmenting its branch network with 11 new branches being opened during the current year with the total number of branches expected to be around 110 branches and offices by the year-end in the UAE, Egypt, Kuwait, Qatar and China, upgrading its technology infrastructure, enhancing its product and service offering whilst remaining resolute on its journey of quality and service excellence.”

The bank’s operating profit for the nine-month period ended September 30 increased by 1.5 per cent on year to Dh1,836 million. Loans and advances in the same period rose 7.1 per cent on year to Dh60.6 billion, while customer deposits were up 16.3 per cent at Dh64.3 billion.

The bank said the increase in its operating profit was driven by a growth in operating income while continuing to invest in growing the business franchise. “The operating income for the nine -month period ended September 30, 2013, of Dh2,462 million was up by 3.5 per cent compared to that for the prior period, driven by an increase in net interest income and net income from Islamic financing.”

UNB’s total assets as of september end were valued at Dh85.8 billion, up 10 per cent year-on-year.

The bank said it had a strong liquidity position with a loan to deposit ratio of 94.2 per cent as of the end of September.

“In line with the Group’s strategy to sustainably grow revenue streams and profit in the future, ongoing investments are being made in the various enabling areas. Significant IT and non-IT related investments have included the implementation of a new core banking software and Middleware and opening of 11 branches in the UAE and Egypt,” said UNB.

The annualised return on average equity, excluding Tier 1 capital notes was 15.4 per cent for the nine-month period ended September 2013, the bank added.