Union National Bank Third-Quarter Profit Advances 28% on Interest Income

Union National Bank PJSC, in which the governments of Abu Dhabi and Dubai hold stakes, said third- quarter profit rose 28 percent on higher lending income.

Net income advanced to 459.6 million dirhams ($125 million), or 0.18 dirham a share, from 358 million dirhams, or 0.13 dirham, a year earlier, the bank said in a statement posted on the Abu Dhabi bourse today. Investment bank Shuaa Capital PSC estimated a third-quarter profit of 417 million dirhams.

Banks in the United Arab Emirates, the second-biggest Arab economy, are recovering after the global financial crisis weakened lending, crimped investment banking and spurred loan defaults. U.A.E. economic growth will probably improve to 3.2 percent in 2011 from 2.4 percent this year, according to estimates from the Washington-based International Monetary Fund.

Union National Bank’s net interest income and income from Islamic financing climbed 27 percent in the quarter to 513.4 million dirhams, while fee and commission income rose 24 percent to 141.2 million dirhams. The lender’s loan book increased 7 percent at the end of September from December to 54.4 billion dirhams. Customer deposits gained 3 percent to 52.9 billion dirhams.

Impairment losses on financial assets almost doubled to 59.8 billion dirhams, the company showed.

Union National Bank fell 2.5 percent to 3.5 dirhams in Abu Dhabi trading yesterday, trimming its gain this year to 21 percent.

To contact the reporters on this story: Arif Sharif in Dubai at asharif2@bloomberg.net

To contact the editor responsible for this story: Edward Evans at Eevans3@bloomberg.net

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