Union National Bank Q4 profit falls to $46m
Abu Dhabi, February 14, 2011
A sharp rise in provisions for bad loans weighed on Abu Dhabi's Union National Bank (UNB) profitability as the lender reported a fall in both full-year and quarterly profit on Monday, missing analyst's estimates.
UNB's fourth-quarter profit in the three months ending December 31 dropped 25.6 per cent, Reuters calculated, to Dh170 million ($46.3 million), from Dh228.5 million in the prior-year period.
A Reuters poll of four analysts had estimated an average fourth quarter profit of Dh222.79 million.
For the full year, the company posted a profit of Dh1.35 billion, compared with Dh1.16 billion in 2009.
Chief executive Mohammad Nasr Abdeen said the bank had continued to grow in a 'measured manner in 2010', in a statement to the bourse.
Impairments stood at Dh482.4 million at the end of the year, up 67 per cent over the previous year, financial statements showed. UNB did not provide figures for the fourth-quarter.
Loans grew 11.4 per cent to Dh56.6 billion in 2010, while deposits rose 13 per cent to Dh57.9 billion.
Operating income went up 20 per cent to Dh2.6 billion in 2010 driven by an increase in interest and non-interest income, the statement said.
Shares in UNB were 2.1 per cent higher at 0742 GMT.-Reuters