UNB Q1 profit rises 20% on stronger operations

Led by stronger core banking operations, Abu Dhabi-listed Union National Bank posted a 20 per cent rise in Q1 net profit on Monday, beating analyst forecasts.

The fifth largest lender on the Abu Dhabi exchange by assets reported a net profit attributable to equity holders of Dh610.8 million ($166.29 million) in the three months to March 31, up from Dh509.1 million a year earlier, a bourse filing said.

Five analysts polled by Reuters forecast an average profit of Dh547.4 million.

UNB had loans and advances worth Dh66.94 billion at March-end, up from Dh64.07 billion a year ago.

Customer deposits were Dh69.68 billion as of March 31. This compares with Dh67.44 billion 12 months earlier.

Mohammad Nasr Abdeen, CEO of UNB, said the UNB Group witnessed all round improvement in its various business lines which led to the Group posting a record quarterly profit.

“Along with the strong financial performance in the first quarter, it is pleasing to note the continuing improvement in asset quality metrics with loan loss coverage being close to 100 per cent,” he added.

Operating profit for Q1 was Dh684 million, an increase of 22 per cent over the same period last year. Operating income for three months ended March 31, 2015, was up by 19 per cent to Dh935 million compared to the corresponding period of previous year driven by a strong growth in both net interest income and non-interest income.

The investment portfolio of the group increased by 50 per cent year-on-year to Dh14.4 billion as at March 31, 2015, and was up by 24 per cent in comparison to prior year end. Total assets of the group totalled Dh97.8 billion as at March 31, 2015, an increase of 9 per cent over that of March 31, 2014.

Customers’ deposits were Dh69.7 billion as at March 31, 2015, registering an increase of 4 per cent compared to the corresponding period in the previous year and up by 3 per cent in the first quarter of 2015.

Follow Emirates 24|7 on Google News.