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28 March 2024

Union National Bank Q3 profit jumps 28%

Analysts polled by Reuters had on average expected profit of Dh322.1 million for UNB (FILE)

Published
By Reuters

UAE lender Union National Bank beat analysts' forecasts on Wednesday by posting a 28 per cent increase in third-quarter net profit, helped by a surge in net interest income.

The Abu Dhabi-based lender made a net profit of Dh459.6 million ($125.1 million) in the three months to Sept. 30, up from Dh358.05 million in the same period last year.

Analysts polled by Reuters had on average expected profit of Dh322.1 million.

Net interest income rose to Dh429.2 million, an increase of 31 per cent. Net fee and commission income jumped 24 per cent, the company said in a statement.

Impairments stood at Dh59.8 million at the end of the third quarter.

UAE lenders suffered a tough year in 2009 as a regional property boom ended and banks were forced to book hefty provisions against bad debt.

UNB's second-quarter profit missed expectations due to higher provisions but the bank's chief executive said at the time profit was sustainable in the second half and he expected growth in core business and its branch network to continue.

Shares in UNB closed at Dh3.50 on the Abu Dhabi bourse on Tuesday.