Union National Bank net profit rises 25%

Dubai: Union National Bank on Thursday reported a consolidated net profit of Dh720.3 million for the six months ending June 30, up 25 per cent compared to the Dh575.3 million reported during the same period last year.

The bank also reported a 25.3 per cent increase in net profit for the second quarter of 2010 at Dh340 million compared with Dh271.3 million in the same quarter last year.

UNB's operating profit for the first half was Dh944.4 million, up 35 per cent over the corresponding period last year.

Strong position

The results reflect the bank's "prudent approach" and has helped "strengthen its financial position in the prevailing prolonged challenging economic cycle," the bank said in a statement.

The operating income for the six month period ended June 30 was Dh1,288.1 million, up 26.8 per cent compared to Dh1 billion in the first half of last year. The bank attributes its strong first half performance to an increase in both net interest income which was up 22.4 per cent to Dh946.7 million and higher non-interest income which was up by 40.7 per cent to Dh341.4 million compared to Dh242.7 million reported in the first half of last year.

The increase in net interest income was achieved mainly through incisive asset-liability management and sustainable growth in higher yielding interest earning assets, UNB said.

On the cost side, operating expenses reached Dh343.8 million from Dh318.5 million during the first six months of last year. The increased operating expenses were more than offset by the increase in operating income which led to a further improvement in the cost to income to 26.7 per cent in the first half of this year from 31.3 per cent in the first half of last year.

More money

• Dh720m: UNB's consolidated net profit in first six months
• Dh575m:  UNB's profit in the same period of 2009