Abu Dhabi's UNB fourth quarter profit declines at $46m

UNBAbu Dhabi's Union National Bank has announced its financial results reporting fall in its full year and fourth quarterly results. UNB Q4 net profit stood at $46m much below the street estimates. The decline is due to sharp rise in provisions for bad loans weighed on Abu Dhabi's Union National Bank.

A Reuters poll of four analysts had estimated an average fourth quarter profit of AED222.79m for the bank but is reduced to AED170m ($46.3m), from AED228.5m in the prior-year period. Company's full year net profit stood at AED1.35bn, compared with AED1.16bn in 2009.

Bank's Chief Executive Mohammad Nasr Abdeen said that bank's impairments stood at AED482.4m at the end of the year with an increase of 67 per cent over the previous year. Loans and deposits reported an increase of 14 and 13 per cent respectively to stand at AED56.6bn and AED57.9bn.

Jaap Meijer, senior financial analyst at Alembic HC Securities, said, "The loan losses were less than expected and non-performing loans are very well controlled. Exposure to Dubai World was less than expected."