(MENAFN- Khaleej Times) Union National Bank, or UNB, on Wednesday said its 2015 first-half net profit rose 15 per cent to Dh1.186 billion due to strong growth in customers' deposits, fees and commission income.
The fifth largest lender on the Abu Dhabi stock exchange by assets said its second-quarter net profit also climbed 10 per cent to Dh571 million from Dh520 million in the similar period last year.
The UNB Group assets crossed Dh100 billion mark for the first time to Dh103.8 billion as at June 30,2015, up by 13 per cent. Strong growth in assets was mainly driven by an increase in loans and advances and investments portfolio. The loans and advances were Dh67.6 billion as at 30 June 2015, up by nine per cent year-on-year basis and five per cent compared to the previous year-end.
"It's heartening to note that during the first half of the year, the UNB Group's total assets crossed the Dh100 billion 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," said Mohammad Nasr Abdeen, chief executive officer of UNB.
He further said the UNB Group continues to witness solid financial performance with operating income for the six month period recording Dh1.9 billion along with consistently improving asset quality metrics with loan loss coverage increasing to above 100 per cent during the first half of the year.
The first-half operating income surged 20 per cent to Dh1.914 billion compared to Dh1.596 billion in the same period last year. This increase in net interest income and net income from Islamic financing, which was up by 16 per cent in the first half of 2015, to Dh1.475 billion as against Dh1.273 billion in the corresponding period last year.
The net interest margin improved by 30 basis points to 3.16 per cent 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 per cent over the corresponding period last year.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.