UNB net profit up 11 per cent in 2011

Dubai: Union National Bank Tuesday reported a full-year net profit of Dh1.5 billion, up 11 per cent compared to Dh1.35 billion reported in 2010.

Net interest income and net income from Islamic financing was up 22.5 per cent to Dh2.38 billion in 2011 from Dh1.95 billion in 2010. The increase in net interest income was partly offset by a 25 per cent decline in non interest income to Dh448.4 million in 2011 from Dh603.9 million in 2010.

The bank raised general provisions to Dh783 million at the end of last year from Dh472 million year earlier. Loans and advances rose 1.8 per cent to Dh57.6 billion last year, while customer deposits increased 4 per cent to Dh60.3 billion. Non performing loans to gross loans ratio was at 3.7 per cent at the end of the year.

"The fourth quarter quarter non-performing loans and advances increased because of "the classification of the bank's exposures to some entities that are part of the Dubai Holding Group and certain other credit exposures," the bank said in a statement posted on the Abu Dhabi Securities Exchange's website.

The bank's board has proposed a 15 per cent cash dividend for 2011.

"The solid results for fiscal 2011 is an affirmation of the prudent strategy being pursued by the group focusing on targeted markets and key business segments," said Mohammad Nasr Abdeen, Chief Executive Officer of UNB.