Dubai: Union National Bank (UNB) reported on Sunday a 6 per cent decline in its net profit for the first quarter of 2018, which reached Dh426 million, down from the Dh452 million recorded in the same quarter of 2017.
The decline came as non-interest income fell during the quarter by 16 per cent and operating expenses rose by 8 per cent year-on-year.
The bank’s profits are below market expectations, with analysts from EFG Hermes forecasting Dh456 million in net profit and analysts from SICO Bahrain projecting Dh465 million in profits.
On the balance sheet side, loans and advances fell 6 per cent compared to the first quarter of 2017, reaching Dh69.1 billion.
“The loan growth in the UAE banking sector has remained modest as credit demand remains soft. During this period, the group has maintained its strategy to pursue loan growth on a selective basis,” said Mohammad Nasr Abdeen, UNB’s chief executive officer.
