Abu Dhabi's UNB Q2 net rises 23%

Union National Bank , jointly owned by the governments of Abu Dhabi and Dubai, posted a 23-per cent rise in second-quarter net profit, beating analysts’ forecasts, as higher impairment losses were offset by a surge in net interest income.               

The Abu Dhabi-headquartered lender earned a net profit of Dh415.3 million ($113.35 million) in the second quarter, compared with Dh337.38 million in the same period one year earlier.  

Analysts polled by Reuters forecasted an average profit of Dh388.83 million in the second quarter.        

Impairment losses in the second quarter were Dh151.0 million compared with Dh124.60 million in the year ago period, UNB said in a bourse statement on Sunday.       

Net interest income surged to Dh512 million for the quarter versus Dh395.6 million a year earlier, the company said, attributing the increase mainly to a rise in loan growth.              

Loans and advances rose 5.1 per cent to Dh56.2 billion as at June 30, UNB said. UAE banks have struggled to increase lending despite a rise in overall liquidity in the banking system.