Q2 profit for Union National Bank down 36.4 pct

Thursday witnessed UAE's Union National Bank posting a 36.4 percent plunge in second-quarter net profit, since it booked provisions against losses arising from the financial crisis.

A net profit of 271.32 million dirhams ($73.86 million) was posted by the bank, which is lower than 426.62 million dirhams in the same period last year.

A statement by the bank's Chief Executive Mohammad Nasr Abdeen said: "The continuing challenging market environment led to a decline in the net profit mainly due to the fair value loss on investment properties and the higher impairment charge on loans and advances."

In the second quarter, net impairment losses rose to 76.2 million dirhams, from 29 million dirhams in the first quarter.

It should be noted that a net profit of 575.26 million dirhams was made by the bank in the first half of the year, compared with 764.58 million dirhams a year earlier.

According to the lender, it has limited exposure to Saudi Arabia's troubled Algosaibi group, and had taken adequate provisions, but it had no exposure to Saad Group.

The first quarter of this year saw Union National Bank reporting a 303.9 million dirhams net profit, attributable to shareholders.

The second quarter results were made public after the markets had closed.