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Union National Bank (UNB) yesterday announced it had earned a net profit of Dh91.26 million for the first quarter this year, a 26 per cent increase over the same period last year.
As the first bank in the UAE to announce first quarter results, UNB expects to maintain a robust growth for the full year going by early trends.
Low interest rates, the general slowdown due to the Iraq war and regional tension had no impact on the bank's profitability.
"The problems in the region had no impact on the UAE although the economy is slower than before. Non-interest income has shown a big increase. Our results are much as per our plans," said Mohammad Nasr Abdeen, chief executive, UNB.
The growth in net profit came on the back of high returns on investments in real estate as well as strong retail earnings.
The bank posted operating profits of Dh113.36 million in the first quarter this year compared with Dh94.33 million, same period last year, registering a growth of 20.2 per cent.
Total assets grew to Dh13.21 billion compared with Dh11.66 billion, a 13.3 per cent growth over last year same period.
Total loans and advances jumped to Dh9.3 billion from Dh 7.4 billion, posting a rise of 26 per cent, while total deposits surged to Dh11.34 billion from Dh10.0 billion registering a growth of 13 per cent.
"The clear mission of the bank during the next three years will be to be a top quality bank and the best service provider in the UAE banking industry," he said, adding that the first quarter of this new three-year period has produced strong financial results which can be attributed to the implementation of this new strategy oriented towards exemplary service provision.
In the first quarter, UNB launched 'Al Safwa' and 'Al Taaleem' savings plan. While the former caters to high net-worth individuals, the latter addresses the future needs of customers and their children. The credit card product has also been enhanced.
"As an integral part of the corporate image building, we have opened/shifted refurbished 17 branches and the remaining nine branches will be completed within two years," Abdeen said.
UNB's return on equity (ROE) of 19 per cent is the highest among UAE banks. "We expect to maintain this," he said.
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