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

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Emery Long
5 years ago
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1 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 millin, up by 6 ver the same quarter f 2013 Lans and advances f AED 62.0 billin as at 30 June 2014, up by 3 year-n-year Custmers depsits f AED 67.0 billin as at 30 June 2014, up by 16 year-n-year Ttal assets f AED 92.2 billin as at 30 June 2014, up by 15 ver crrespnding perid prir year and up by 5 cmpared t prir year end Cnsistently sund liquidity psitin with lan t depsit rati f 92.5 and advances t stable resurces f arund 82 as at 30 June 2014 Asset quality cntinuing t imprve with NPLs t grss lans f 3.9 and lan lss cverage f 91.3 as at 30 June 2014 Strng capitalisatin level with verall capital adequacy rati f 18.9 with Tier 1 capital adequacy rati f 17.8 as at 30 June 2014 Incme statement highlights AED Millin Q2' 14 Q1' 14 Q2' 13 QQ YY H1' 14 H1' 13 YY Net interest incme and net incme frm Islamic financing (3) 1,273 1,321 (4) Nn-interest incme (5) (1) Operating Incme (2) 1,596 1,648 (3) Operating Expenses (7) (8) (12) Operating prfit (6) 1,136 1,238 (8) Impairment Lss n financial assets (5) Incme Tax (33) (33) (18) Net Prfit , Financial Psitin highlights AED Billin 30-Jun Jun Dec-13 Ttal Assets Lans and advances Custmer Depsits Equity attributable t equity hlders f the Bank

2 Key Financial Indicatrs H1'14 H1'13 Return n Average Equity (ROAE)* (0.9) Return n Average Assets (ROAA)* (0.1) Cst / Incme rati (3.9) Capital Adequacy Rati (0.6) Earnings per Share (AED) * Annualized Financial Review Unin Natinal Bank (UNB), ne f the leading banks based in the United Arab Emirates, recrded a prfit f AED1,032 millin fr the first half f 2014 (H1-2013: AED 987 millin), an increase f 5 cmpared t the crrespnding perid previus year. The prfit fr the secnd quarter f 2014 was AED 520 millin (Q2-2013: AED 492 millin), an increase f 6 cmpared fr the same quarter f 2013 and was up by 2 quarter-nquarter. Cmmenting n the results, Mr. Mhammad Nasr Abdeen, Chief Executive Officer, Unin Natinal Bank said Fllwing a gd first quarter results, the UNB Grup further imprved its perfrmance in the secnd quarter f the year, with the prfit fr the first half f the year crssing the AED 1 billin mark. The Grup remains n a slid fting as is evidenced by a calibrated increase in business, ample liquidity and strng capitalizatin levels. He added that The asset quality cntinues t imprve with the nn-perfrming lans reducing bth n an abslute basis as als relative t the grss lans, with the cverage being maintained at adequate levels. AED Millin Net prfit fr the perid Q--Q +2, Y--Y Q2-13 Q1-14 Q2-14 The perating incme fr the six mnth perid ended 30 June 2014 was AED 1,596 millin (H1-2013: AED 1,648 millin) slightly lwer cmpared t that fr the prir perid. Hwever, the perating incme fr the secnd quarter f the year increased by 4 n a quarter-n-quarter basis t AED 812 millin. The net interest incme and net incme frm Islamic financing fr the six mnth perid ended 30 June 2014 was AED 1,273 millin 2

3 (H1-2013: AED 1,321 millin) impacted mainly by a reductin in the net interest margin which was partly ffset by an increase in the lans and advances and investments prtfli. Cmpetitive banking pressures led t a reductin in the net interest margin t 2.86 fr the first half f the year (H1-2013: 3.20), althugh the net interest margin imprved in the secnd quarter f the year. The nn-interest incme remained relatively stable at AED 323 millin (H1-2013: AED 327 millin) with the net fee and cmmissin incme bsted by 15 in the first half f the year t AED 283 millin (H1-2013: AED 246 millin) ffset by lss frm trading and nn-trading financial instruments f AED 5 millin against the gain f AED 42 millin fr the crrespnding perid f Balance sheet The ttal assets grew by 15 year-n-year and were up by 5 as cmpared t previus year end t reach AED 92.2 billin as at 30 June 2014 (31 December 2013: AED 87.5 billin).the lans and advances increased by 3 cmpared t the same perid in 2013 and prir year end t reach AED 62.0 billin as at 30 June 2014 (30 June 2013: AED 60.3 billin, 31 December 2013: AED 60.0 billin). As part f the Grup s effective liquidity management, the UNB Grup increased its prtfli f high quality fixed incme investments which was AED 11.0 billin as at 30 June 2014 (31 December 2013: AED 7.9 billin), up by 39 in the first half f the year. Custmers depsits als grew strngly by 16 t reach at AED 67.0 billin as at 30 June 2014 (30 June 2013: AED 58.0 billin) and up by 3 cmpared t previus year end (31 December 2013: AED 65.1 billin). AED Billin Custmers Depsits Y--Y +16 AED Billin 80.0 Lans and Advances Y--Y The lan t depsit rati was 92.5 as at 30 June 2014 (31 December 2013: 92.2) with the Central Bank f the UAE mandated advances t stable resurces rati being at circa 82 as at 30 June 2014 (31 December 2013: circa 82) well within the regulatry nrms. Liquidity cntinues t be effectively managed with liquid assets cnstituting 16.5 f the ttal assets as at 30 June 2014 (31 December 2013: 17.9). 3

4 Operating expenses The UNB Grup has cntinued t expand its distributin netwrk and nw has 110 branches and ffices spanning five cuntries. Onging investments in the areas f technlgy and infrastructure cntinue t further enhance the UNB Grup s psitin t prvide superir banking experience t its custmers. The cst t incme rati fr the UNB Grup, remained amng the best lcally at 28.8 fr the first half f 2014, while cntinuing t invest fr the future with perating expenses increasing by 12 as cmpared t the crrespnding perid previus year t AED 460 millin (H1-2013: AED 410 millin). Credit quality In line with the trends ver the previus several quarters, the asset quality measures have cntinued t imprve with the NPLs t grss lans rati being 3.9 as at 30 June 2014 (31 December 2013: 4.3), a decline f 40 bps in the first half f 2014 and 20 bps in the secnd quarter. The lan lss cverage as at 30 June 2014 was 91.3 (31 December 2013: 90.7). At the back f the imprving asset quality, the impairment charge bth in the first half and secnd quarter reduced significantly. Credit Quality Lan Lss Cverage Rati NPL/ Grss Lans 0.0 Prfitability measures and Capital strength The annualized return n average equity, excluding Tier 1 capital ntes was 15.2 fr the first half f the year (H1-2013: 16.1) and the annualized return n average assets was 2.3 fr the first half f the year (H1-2013: 2.4). The earnings per share fr the six-mnth perid ended 30 June 2014 remained strng at AED 0.35 (H1-2013: AED 0.33), an increase f 6 cmpared with a year earlier. Capitalizatin levels cntinued t remain strng with the Overall Basel II capital adequacy rati being 18.9 as at 30 June 2014 (31 December 2013: 19.9) and the Tier I capital adequacy rati being 17.8 as at 30 June 2014 (31 December 2013: 18.7). 4

5 Capital Adequacy Rati Capital Adequacy Rati Tier 1 Rati Ratings During the secnd quarter f 2014, Capital Intelligence affirmed the Bank s Financial Strength Rating at A+, Freign Currency Lng-Term Rating at A+ and Shrt-Term Rating at A1 with Stable Outlks. Earlier in the year, Fitch Ratings had affirmed the Bank s rating as A+ Lng-term IDR and F1 Shrt-term IDR with Stable Outlk. Awards and Acclades In the first half f the year, the Bank has been the privileged recipient f numerus awards and acclades. Sme f the prminent awards / acclades wn by the Bank include: 2013 United Eurpe Award by Scrates Cmmittee, Eurpe Business Assembly at an award ceremny held in United Kingdm Prestigius 2014 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 2014 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 5

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

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