UNB announces 20pc dividend

Union National Bank (UNB) announced a 20 per cent dividend following a 24 per cent growth in net profit for 2002 to Dh300 million.

Dividends will comprise10 per cent bonus shares and 10 per cent cash. An amount of Dh164.4 million has been approved for dividends, thus increasing the shareholders' equity by 15 per cent to Dh1.7 billion.

Sheikh Nahyan Mubarak Al Nahyan, chairman, presided over the annual general meeting.

Mohammad Nasr Abdeen, chief executive, said net interest income increased by 18.3 per cent to Dh441 million despite margins coming under pressure in the low interest rate environment. This reflects the bank's ability to manage its risks in a difficult economic climate and challenging market conditions.

"The announced net profit was achieved despite maintaining a very conservative provisioning policy and an increase of 10.91 per cent in total assets over the prior year," he said.

The bank's profitability ratios continue to sustain an improving year-on-year trend with the return on average assets increasing from 1.91 per cent in 2001 to 2.15 per cent in 2002, while the return on average equity increased from 17.24 per cent to 18.93 per cent for the same period respectively.

Assets were at Dh14.7 billion, of which Dh8.7 billion represent a loans and advances portfolio, which grew by 9.7 per cent over the past years. Customer deposits increased by 7.7 per cent in 2002 to reach Dh11.7 billion.

Abdeen said productivity of employees as measured by net profit per employee has improved by 18 per cent in 2002. This, in turn, contributed to an improved cost to income ratio of 35.11 per cent for 2002.

"The bank embarks on a new three-year mission and will remain firmly focused on providing top quality and innovative services to its clients and ever-growing investment value to its shareholders," he said.