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Thu 29 Jul 2010 10:39 AM

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Abu Dhabi's UNB Q2 profit up 25 percent

Union National Bank's second quarter profit misses estimates; provisions rise 90 percent in the first half.

Abu Dhabi's UNB Q2 profit up 25 percent
STOCK WATCH: UNB shares closed at AED2.99 on the Abu Dhabi bourse on Wednesday.(Getty Images)

UAE bank Union National Bank (UNB) missed forecasts with a 25-percent rise in second-quarter net profit after the lender set aside more money to meet loan losses.

Abu Dhabi-based UNB made a profit of 340 million dirhams ($92.57 million) in the three months to June 30.

That was up from 271.3 million dirhams a year earlier but short of the 374.2 million forecast on average by analysts polled by Reuters.

Loan impairments stood at 216.5 million dirhams at the end of the first half versus 113.7 million dirhams a year earlier, the statement said.

Loans grew 8.1 percent, while deposits fell 0.8 percent in the half year.

UAE lenders suffered a tough year in 2009 as a regional property boom came to an end and banks were forced to book hefty provisions against bad debt.

In May, Morgan Stanley cut Union National Bank to "equal -weight" from "overweight".

On Wednesday, another Abu Dhabi lender, First Gulf Bank missed forecasts with a 2 percent rise in second-quarter profit. [ID:nLDE66413F]

UNB shares closed at 2.99 dirhams on the Abu Dhabi bourse on Wednesday. (Reuters)

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