ABU DHABI
Union National Bank, UNB, yesterday reported net profits of Dh1.58 billion in 2016 with an operating profit of Dh2.35 billion, lower by 13 percent.
The operating income for 2016 was Dh3.49 billion, a decrease of seven percent compared to 2015, while the net interest income and net income from Islamic financing for 2016 was Dh2.6 billion, lower by 10 percent, mainly due to a reduction in net interest margin by 37 base points to 2.66 percent due to increased cost of funding.
Sustained increase in business volumes and the group’s continued focus to enhance non-interest income led to an increase in non-interest income by six percent to Dh858 million in 2016. The increase in non-interest income was principally due to higher gain on dealing in foreign currencies and derivatives, net investment income and higher fair value gain on investment properties.
The group’s Board of Directors has recommended a dividend payment of 20 percent, Dh0.20 per share, of cash dividend subject to necessary approvals.
Mohammad Nasr Abdeen, Chief Executive Officer of Union National Bank, said, “In the backdrop of tough market conditions, UNB has delivered consistent results driven by steady business growth and effective risk and cost management.” He added, “During 2016, the group further expanded its branch network, upgraded the core banking platform and the IT infrastructure and continued to invest in both physical and digital infrastructure to enhance our market presence and roll out ‘best in class’ products and services globally.”
— Wam