Abu Dhabi: The core profit (excluding fair value changes on investment properties) for the UNB Group for fiscal 2009 was Dh1,277.2 million (2008: Dh1,150.9 million), an increase of 11 per cent over the corresponding figure for the previous year.
The group's results are quite encouraging when viewed against the back drop of the uncertain and difficult global market conditions that have prevailed since the start of the US Sub-prime mortgage crisis in 2007.
The profit for the fourth quarter of 2009 of Dh222 million (Q4-2008: Dh65.8 million) is a reflection of the prudent approach that the Group has adopted to focus on its core businesses.
The consolidated profit for the UNB Group of Dh1,157.6 million for 2009 (2008: Dh1, 441.2 million) was lower by 19.7 per cent compared to that for the prior year mainly due to the impact of the fair value changes on investment properties as also the higher impairment charges on loans and advances, in line with the up-tick witnessed in non-performing loans and advances globally.
In the fourth quarter of 2009, the Group recognised an additional fair value loss on its portfolio of investment properties that resulted in the operating profit for 2009 of Dh1, 469.6 million (2008: Dh1, 653.7 million), a decrease of 11.1 per cent over that for 2008.
Careful balance sheet management ensured that the adjusted operating profit (excluding fair value changes on investment properties), increased by 16.6 per cent to Dh1, 589.3 million (2008: Dh1, 363.5 million).
