Union National Bank announcesresults for the9-month period ended 30 September Profit ofaed 1.6 billion, up by 10%

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Gervase Lindsey
5 years ago
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1 Unin Natinal Bank annuncesresults fr the9-mnth perid ended 30 September 2014 Key Highlights Prfit faed 1.6 billin, up by 10% Strng prfit grwthin the third quarter f22% ver the same perid f 2013, with a recrd third quarter prfitf AED 552 millin Sustained grwth in lans and advances t AED 64.0 billin as at 30September 2014, up by 6% year-n-year Ttal assets f AED 88.6 billin as at 30 September 2014, up by 3%ver crrespnding perid prir year and up by 1%cmpared t 2013 year end Sund liquidity with cmfrtable Central Bank f the UAE mandated advances t stable resurces rati f arund 90% as at 30 September 2014 Cst t incme rati f 28% cnsistently amngst the best in the UAE banking industry Cntinually imprving asset qualitymeasures with NPLs t grss lans f3.7% and lan lss cveragef 94.3% as at 30September 2014 Rbust capital ratiswith verall capital adequacy rati f 19.2% with Tier 1 capital adequacy rati f 18.1% as at 30September 2014 Incme statement highlights AED Millin Q3' 14 Q3' 13 YY Change % 9 mnth t 30 Sep' 14 9 mnth t 30 Sep' 13 YY Change % Net interest incme and net incme frm Islamic financing ,959 1,990 (2) Nn-interest incme Operating incme ,532 2,462 3 Operating expenses (15) (13) Operating prfit ,824 1,836 (1) Impairment lss n financial assets Incme tax 9 6 (50) (28) Prfit fr the perid ,584 1, Financial Psitin highlights AED Billin 30-Sep Sep-13 Change % 31-Dec-13 Change % Ttal assets Lans and advances Investments Custmers' depsits (2) 65.1 (4) Equity attributable t equity hlders f the Bank

2 Key Financial Indicatrs 9 mnth 9 mnth t t Change % 30 Sep' Sep' 13 % % Return n Average Equity (ROAE)* (0.2) Return n Average Assets (ROAA)* Cst / Incme rati (2.6) Capital Adequacy Rati (0.5) Earnings per Share (AED) * Annualized Financial Review Unin Natinal Bank (UNB), ne f the leading banks based in the United Arab Emirates, maintained its cnsistent grwth curse recrding a prfit faed1,584 millin fr the nine mnth perid ended 30 September 2014 (nine mnth perid ended 30 September 2013: AED1,441 millin), an increase f10% cmpared t the crrespnding perid f previus year. The prfit fr the third quarter f 2014 was AED 552 millin (Q3-2013: AED 454 millin), up ntably by22% cmpared t the same quarter f 2013 and an impressive 6% quarterver-quarter, principally driven by an increase in vlumes acrss the varius business segments. Cmmenting n the results, Mr. Mhammad Nasr Abdeen, Chief Executive Officer, Unin Natinal Bank said The UNB Grup s perfrmance in third quarter maintained its upward trend, with the Grup annuncing a recrd prfit. The fcus fr the UNB Grup remains n sustainably grwing its franchise and business. He further added The key t success f the Grup s business mdel is its strng custmer riented strategy, prviding a wide array f award winning prducts and services and persistent endeavur t enhance custmer experience. AED Millin 800 Prfit fr the perid Q--Q +6%, Y--Y +22% AED Millin Prfit fr the nine mnth perid ended 30 September Y--Y +10% 2, ,500 1,441 1, , Q3-13 Q1-14 Q2-14 Q

3 The perating incme fr the nine mnth perid ended 30 September 2014 was AED 2,532 millin (nine mnth perid ended 30 September 2013: AED2,462 millin), 3% higherver the same perid f The perating incme fr the third quarter f the yeargrew strngly t AED 936 millin (Q3 2013: AED 814 millin), up by 15% cmpared t the same perid in 2013.The net interest incme and net incme frm Islamic financing fr the nine mnth perid ended 30 September 2014 was AED 1,959 millin (nine mnth perid ended 30 September 2013: AED 1,990 millin),slightly lwer due t pressure n yields.the net interest margin fr the nine-mnth perid was 2.93% (nine-mnth perid 30 September 2013: 3.21%) with net interest margin fr the third quarterf the year imprving by 14 bps ver the preceding quarter t 3.07%. The nn-interest incme rse by 21% t AED 573 millin (nine mnth perid ended 30 September 2013: AED 472 millin) and n quarter-n-quarter basis it increased by 58%. Net fee and cmmissin incme remained the main driver fr the grwth in nn-interest incme increasing t AED 469 millinfr the nine mnth perid ended 30 September 2014 (nine mnth perid ended 30 September 2013: AED 364 millin), up by 29% ver the crrespnding perid f prir year. Balance sheet The lans and advances grwth gathered mmentum in the third quarter, registering an year-ver-year increase f 6%, with lans and advances being AED 64.0 billin as at 30 September 2014 (30 September 2013: AED 60.6 billin). Cmpared t the previus year-end, the lans and advances were up by 7% till end f September The investment prtfli f the Grup saw a surge, increasing by 56% t AED 11.0 billin as at 30 September 2014 (30 September 2013: AED 7.0 billin) and was up by 38% in cmparisn t prir year end. The ttal assets f the Grup were AED 88.6 billin as at 30 September 2014, an increase f 3% ver that f 30 September As part f the Grup s strategy t actively manage its balance sheet, liquidity levels were re-calibrated, with cntinuing fcus n returns, especially n surplus liquidity. The liquid assets, including investments cnstituted 23% f the ttal assets as f 30 September 2014 (30 September 2013: 25%). Custmers depsits f AED 62.7 billin as at 30 September 2014 were slightly lwer by 2% cmpared t 30 September 2013 t ensure ptimal funding level. The advances t stable resurces rati remained quite cmfrtable at arund 90%, well within the regulatry requirement f a maximum f 100%. The credit t depsit rati was at manageable levelsbeing nminally abve 100% as at the end f the third quarter. 3

4 AED Billin Custmers Depsits Y--Y -2% AED Billin 80.0 Lans and Advances Y--Y +6% Operating expenses The perating expenses f AED 708 millin fr the 9-mnth perid ended 30 September 2014 (nine mnth perid ended 30 September 2013: AED 626 millin), were up by 13% as cmpared t the same perid f prir year, as the Grup cntinues t make investments t supprt future grwth. The cst t incme rati (efficiency rati) fr the nine mnth perid ended 30 September 2014 was 28%, cntinuing t be amngst the best in the lcal banking industry. Credit quality The asset quality has cntinued t cnsiderably imprve with the NPL t grss lans rati being 3.7% as at 30 September 2014 (31 December 2013: 4.3%), a decline f 60 bps fr the nine mnth perid ended 30 September 2014.The lan lss cverage rati further strengthened t 94.3% as at 30 September 2014 (31 December 2013: 90.7%). Theimprving asset quality metrics, led t theimpairment chargedecreasing by 42% t AED 217 millin fr the nine mnth perid ended 30 September 2014 (nine mnth perid ended 30 September 2013: AED 377 millin) despite a tp up in the general prvisin f AED 66 millinduring the perid. 4

5 Credit Quality 100.0% 4.5% 4.3% 94.3% 5.0% 90.7% 3.7% 4.0% 85.7% 3.0% 80.0% 2.0% 1.0% 60.0% Lan Lss Cverage Rati NPL/ Grss Lans 0.0% Prfitability measures and Capital strength In line with the rbust prfitability, the annualized return n average equity, excluding Tier 1 capital ntes was15.2% fr the nine mnth perid ended 30 September 2014 (nine mnth perid ended 30 September 2013: 15.4%) and the annualized return n average assets was 2.4% fr nine mnth perid ended 30 September 2014 (nine mnth perid ended 30 September 2013: 2.2%).The earnings per share fr the nine mnth perid ended 30 September 2014 was AED 0.54 (nine mnth perid ended 30 September 2013: AED 0.48), an increase f 13%cmpared with thesame perid f The capital ratis remained strng in spite f an increase in business, withthe Overall Basel II capital adequacy rati being 19.2% as at 30 September 2014 (31 December 2013: 19.9%) and the Tier I capital adequacy rati being 18.1% as at 30 September 2014 (31 December 2013: 18.7%). Bth the ratis remained significantly abve the respectivethreshlds set by the Central Bank f the UAE. Capital Adequacy Rati 20.0% 19.7% 19.9% 18.5% 18.7% 19.2% 18.1% 10.0% 0.0% Capital Adequacy Rati Tier 1 Rati 5

6 Ratings The Bank has cnsistent strng ratings frm Mdy s Investrs Service Ratings, Fitch Ratings and Capital Intelligence, the three rating agencies that rate the Bank with all the ratings having Stable utlk. Awards and Acclades The UNB Grup is firmly cmmitted in the areas f Business and Service Excellence, as is evident frm its strng and unswerving track recrd. This cmmitment has been recgnized by leading internatinal, reginal and lcal bdies, with a multitude f awards being cnferred t the Bank. Listed belw are sme f the prminent awards and acclades received by the Bank during this fiscal: 2013 United Eurpe Award by Scrates Cmmittee, Eurpe Business Assembly at an award ceremny held in United Kingdm. Prestigius2014 Superbrand award fr the 4th cnsecutive year. An Award f appreciatin fr being a strategic partner f the Zakat Fund Abu Dhabi. Dubai Human Develpment Appreciatin Award at the 20th Business Excellence Award Ceremny held in Dubai, UAE Eurpean Award fr best practices, presented by the Eurpean Sciety fr Quality Research at an award ceremny held in Brussels, Belgium. Tw awards at the 2014 Banker Middle East Prduct Awards fr Best Car Lan and Best Persnal Lan. UNB& UNB Chief Executive Officer, received the Glden Jaguar Internatinal Award fr exemplary business achievements demnstrating high prfessinalism frm the Eurpe Business Assembly at an award ceremny held in Italy. UNB received The BIZZ 2014 trphy fr Business Excellence at The BIZZ Arabic 2014 Award ceremny, while UNB Chief Executive Officer, was cnferred with the Wrld Leader Business persn certificate. UNB wn the 2014 GCC Best Emplyer Brands Award at the Asian Leadership Awards. UNB wn the Best Banking Grup in UAE award at the Wrld Finance Banking Awards

Union National Bank records first-half 2014 profit of over AED 1 billion

Union National Bank records first-half 2014 profit of over AED 1 billion Unin Natinal Bank recrds first-half 2014 prfit f ver AED 1 billin Key Highlights Prfit fr the first half f 2014 f AED 1,032 millin, up by 5 ver the same perid f 2013 Prfit fr secnd quarter 2014 f AED 520