Doha: Union National Bank (UNB), one of the leading banks based in the United Arab Emirates, recorded a strong increase in profit of Dh1,186m for the first half of 2015 (H1- 2014: Dh1,032m), up by 15 percent compared to the same period of 2014.
The profit for the second quarter of 2015 of Dh571m (Q2-2014: Dh520m), was up by 10 percent compared to the corresponding quarter of the last year.
Commenting on the results, Mohammad Nasr Abdeen, Chief Executive Officer, Union National Bank said: “It’s heartening to note that during the first half of the year, the UNB Group’s total assets crossed the Dh100bn mark for the first time, a significant milestone. This growth in assets was the result of the focussed efforts of the operating business segments to grow the business in a consistent manner”.
He added, “The UNB Group continues to witness solid financial performance with operating income for the six month period recording Dh1.9bn along with consistently improving asset quality metrics with loan loss coverage increasing to above 100 percent during the first half of the year”.
The operating income for the six month period ended June of Dh1,914m (H1-2014: Dh1,596m) was up by 20 percent compared to the same period in previous year. This increase in net interest income and net income from Islamic financing, which was up by 16 percent in the first half of 2015, to Dh1,475m (H1-2014: Dh1,273m) was driven by an increase in the asset book and improvement in interest margins. The net interest margin improved by 30 bps to 3.16 percent as compared to the corresponding period in 2014. Net fee and commission income remained the main driver for the growth in non-interest income which was up by 36 percent over the corresponding period last year.
The Peninsula
