UNB approves 10% cash and stock dividends

Abu Dhabi: The shareholders of Abu Dhabi-based Union National Bank (UNB) approved the board of directors' recommendation to distribute a cash dividend and stock dividend of 10 per cent each in a meeting late on Sunday.

"Following the issuance of the bonus shares, the paid up share capital of the bank will increase to Dh2.5 billion," UNB said in a statement on Monday.

The UNB shares closed 0.3 per cent higher on the news on Monday, ending on the Abu Dhabi Securities Exchange (ADX) at Dh3.31 a share.

Previously, the UNB had announced a consolidated net profit of Dh1.35 billion for the financial year 2010, an increase of 16.6 per cent over the previous year. Last year, the bank's loans and advances grew 11.4 per cent on the year to Dh56.6 billion.

UNB also said in 2010 its customer deposits rose 13 per cent year-on-year to Dh57.9 billion.

As well, the value of the bank's total assets grew 8 per cent on the year to Dh81.8 billion.

 New branches

UNB's chief executive said that Union National Bank Egypt will be going forward with its expansion plans in Egypt despite the current political instability in the country.

Four new UNB Egypt branches are expected to be open before the end of June, bringing the bank's branches in the country to 30.

"We have already received all the licences for the banks and we will start building the headquarters building before the end of the year," Mohammad Nasr Abdeen, CEO of UNB told reporters on Sunday night.

Abdeen said that while the situation has "definitely" affected business, "our expansion plan is going in the same manner according to our strategy."

"There is a slowdown in the economy in the past few months and we think it will take a few months until the situation stabilises," he added.

Bonds

Asked whether UNB will issue any bonds, Abdeen said that the bank will "think about bonds once we see improvement in the lending and opportunities for increasing our loans, but for the time being have enough liquidity. We don't need bonds."

• 1.35b - dirhams is UNB's consolidated net profit
• 56.6b - dirhams is the bank's loans and advances