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Abu Dhabi, UAEFriday 21 September 2018

Abu Dhabi's Union National Bank says second quarter profit increases 7 per cent 

Non-interest income bolsters gains even as operating expenses rise 

Union National Bank has sold $500 million of bonds in its first debt issuance for two years. Pawan Singh / The National
Union National Bank has sold $500 million of bonds in its first debt issuance for two years. Pawan Singh / The National

Abu Dhabi-based Union National Bank said yesterday its second quarter net profit rose 7 per cent, boosted by non-interest income. The gain came even as operating expenses rose by 21 per cent.

Net profit for the three months ended June 30 advanced to Dh506 million compared to Dh472m in the same period last year, the bank said. Non-interest income, the money the bank makes from fees and commission, increased 16 per cent in the second quarter to Dh269m compared to Dh232m in the corresponding period last year.

Meanwhile, net interest income and net income from Islamic financing rose 3 per cent to Dh654m in the three months ended June 30 compared to Dh636m in the same period last year.

Operating expenses increased to Dh316m in the second quarter from Dh261m in the same period last year.

“Whilst continuing with our approach to be selective in booking new business, the UNB Group has continued to post consistent results, with the first half year results recording an increase in both the operating income as also the bottom line," said Mohammad Nasr Abdeen, the bank's chief executive officer.

"This growth was underpinned by higher business volumes, prudent risk management and sound cost management. The Group’s already strong capital position improved further adding to the Group’s financial strengths and its solid credit ratings”.

Mkassem@thenational.ae

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