Union National expects biggest profit in two years

PROFIT SURGE: Union National expects second quarter profit to be even better than the first quarter. (ITP Images)

Union National Bank, Abu Dhabi's fourth-largest lender by market value, expects to post its biggest profit in two years in the second quarter, paced by its retail and corporate lending business.

The bank, whose first-quarter profit surged 32.4% to 335.67 million dirhams ($91.39 million), also plans almost to triple the number of branches at its Egyptian unit this year to tap a growing economy in the most populous Arab nation, Chief Executive Mohamed Abdeen told reporters on Tuesday.

"We will be able to achieve similar or more than the first-quarter growth," Abdeen said of second-quarter earnings. "Our retail and corporate business is growing very well."

UNB posted profit of 285 million dirhams in the second quarter of last year.

A 32% gain would imply 2008 second-quarter profit of about 375 million dirhams, the most since the first-quarter of 2006, according to calculations and data from newswire Reuters.

Last year, UNB bought Egypt's Alexandria Commercial & Maritime Bank, which operates nine branches. It plans to expand that to 24 this year, Abdeen said.

"Egypt is a big market," Abdeen said on the sidelines of a branch opening ceremony in Abu Dhabi. "We see retail and investment banking growing strongly."

The Egyptian unit posted profit last year of 70 million Egyptian pounds ($12.97 million), compared with a loss of 87 million pounds the year before, Abdeen said.

The bank also plans to open its first branch in Qatar before the end of June, and add at least eight branches in the UAE this year, Abdeen said.

The bank has already opened at least three UAE branches this year, adding to the 49 it had in October.

Shares of UNB were up 2.2% at 0915 GMT, a day after the lender said it posted its biggest profit in almost two years in the first quarter as income from fees surged during a stock market rally and its lending business grew.

The shares are up more than 13% this year, compared with about 10% for Abu Dhabi's main stock index. (Reuters)

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