Union National Bank's Q4 profit falls 25.6%; provisions rise 67% in 2010
A sharp rise in provisions for bad loans weighed on Abu Dhabi's Union National Bank profitability as the lender reported a fall in both full-year and quarterly profit on Monday, missing analyst's estimates.
UNB's fourth-quarter profit in the three months ending December 31 dropped 25.6 percent, Reuters calculated, to AED170m($46.3m), from AED228.5m in the prior-year period.
A Reuters poll of four analysts had estimated an average fourth quarter profit of AED222.79m.
For the full year, the company posted a profit of AED1.35bn, compared with AED1.16bn in 2009.
Chief Executive Mohammad Nasr Abdeen said the bank had continued to grow in a "measured manner in 2010", in a statement to the bourse.
Impairments stood at AED482.4m at the end of the year, up 67 percent over the previous year, financial statements showed. UNB did not provide figures for the fourth-quarter.
Loans grew 11.4 percent to AED56.6bn in 2010, while deposits rose 13 percent to AED57.9bn.
Operating income went up 20 percent to AED2.6bon in 2010 driven by an increase in interest and non-interest income, the statement said.
Shares in UNB were 2.1 percent higher at 0742 GMT.