The Abu Dhabi-listed Union National Bank said full-year net profit fell 20 per cent to Dh1.16 billion from 1.44bn in 2008.
Fourth-quarter net profit more than tripled but missed forecasts as customer deposits and bad loan provisions both grew.
Earnings at Abu Dhabi's fifth-largest bank by market value came in at Dh222.1 million, the bank said, compared with Dh65.8m in the same period last year and analyst expectations of Dh254.5m. "The challenging credit conditions have resulted in increased delinquencies in line with the global trends," said the bank.
Many banks in the UAE have seen provisioning levels on the rise due to the global downturn and the debt trouble at two major Saudi firms, putting pressure on their profitability.
Keep up with the latest business news from the region with the Emirates Business 24|7 daily newsletter. To subscribe to the newsletter, please click here.