The capital is aiming to attract 3.9 million visitorsAugust 4, 2015 9:00
Union National Bank Q4 net profit falls on provisions
Abu Dhabi lender Union National Bank's fourth-quarter profit fell 19.2 percent after the bank set aside more money to meet potential loan losses arising from exposure to Dubai Holding Group entities.
February 7, 2012 3:22 by Reuters
The fifth-largest bank in Abu Dhabi by market capitalisation saw its fourth-quarter net profit drop to 135 million dirhams ($36.76 million)from 167 million dirhams in the final three months of 2010, according to Reuters calculations.
Reuters calculated the fourth quarter profit from previous financial statements. UNB did not provide quarterly figures.
“The increase in non-performing loans and advances in the fourth quarter of 2011 was due to the classification of the bank’s exposures to some entities that are part of the Dubai Holding Group and certain other credit exposures,” UNB said.
The lender recorded a 2011 net profit of 1.5 billion dirhams ($408.4 million), compared with 1.35 billion dirhams in the previous year, according to a statement to the Abu Dhabi bourse.
UNB, which is 50-percent owned by the Abu Dhabi government, said general provisioning for 2011 had risen 65.8 percent to 783.3 million dirhams.
The bank is one of the six institutions on the unsecured creditor committee for the $10 billion restructuring of Dubai Group. Sources told Reuters last week the Dubai government, acting through the Supreme Fiscal Committee, had walked away from talks to solve the unit’s debt problems.
Bankers had warned in November that a lack of resolution to the restructuring would force banks into significant provisioning at the end of 2011.
An increase in net interest income and income from Islamic financing, up 22.5 percent in 2011, was partly offset by a 25.7 percent decrease in non-interest income, the bank said.
Deposits at the bank rose 4.1 percent in 2011 – to 60.3 billion dirhams from 57.9 billion dirhams in 2010, while net loans and advancesrose slightly, to 57.6 billion dirhams at the end of 2011 from 56.6 billion at the end of the previous year.
The board of UNB has proposed a cash dividend of 15 percent, the statement added. UNB shares dropped 2.5 percent in early Abu Dhabi trading. ($1 = 3.6730 UAE dirhams) (Reporting by David French; Editing by Dinesh Nair) *image from topnews.ae