Union National Bank’s consolidated net profit attributable to equity shareholders reached AED 253.5 million for the first quarter of 2007 as compared to AED 422.5 million for the corresponding period of 2006. The results for the corresponding period in 2006 were positively impacted by the strong and opportunistic IPO and capital market related activities, which have since been severely curtailed due to the continuing and persistently weak local and regional capital market conditions. The Group’s income from core activities continues to be strong having grown at over 30% on a quarter on quarter basis.
UNB has continued to sustain healthy profitability ratios as evidenced by a return on average assets of 2.4% and return on average equity of 17.5% for the first quarter of 2007. The efficiency ratio (cost to income) at 29.7% reflects prudent and sound cost management.
The net loans and advances have grown by AED 1.1 billion from AED 27.5 billion as at 31 December 2006 to reach AED 28.6 billion as at 31 March 2007. The total assets for the Group as at 31 March 2007 were AED 41.4 billion.
In the first quarter of 2007, UNB participated in the capital increase of its majority owned subsidiary - Alexandria Commercial and Maritime Bank (ACMB), Egypt through a rights issue. Post the capital increase ACMB would be well capitalized to grow and book profitable business in the lucrative Egyptian banking market. This enhanced level of investment is as per the Bank’s strategy to grow regionally and in the other identified target markets. The Bank continues to actively evaluate other markets and countries to grow its franchise and establish footprint.
In keeping with its strategy of providing a complete range of financial solutions, UNB last year had set up Al Wifaq Finance Company to provide Shari’a compliant Islamic finance products. In Q1 2007 the focus at Al Wifaq Finance Company has been to build its systems and infrastructure to tap the growing market for Shari’a compliant finance products. Recently, the company opened its maiden branch in Abu Dhabi, United Arab Emirates to serve its customers.
About Union National Bank:
Union National Bank (UNB) is a public joint stock company incorporated under the laws of the United Arab Emirates in 1982. UNB operates through a network of 43 branches and 101 ATMs throughout the UAE. UNB is present in the Arab Republic of Egypt through its 94.8% owned subsidiary Alexandria Commercial and Maritime Bank (ACMB) which has 9 branches in Egypt.
UNB has two other subsidiaries. (1) Union Brokerage Company (UBC) which provides brokerage services for customers trading in shares and securities on Abu Dhabi Securities Market (ADSM) and Dubai Financial Market (DFM). UBC operates from state of the art offices which are located in Abu Dhabi, Dubai, Al Dhafra, Al Ain and Fujairah. (2) Al Wifaq Finance Company (AWFC) an Islamic Finance Company offers Shari’a compliant products and services to tap the growing Islamic banking market.
UNB is the only bank in the UAE which has significant shareholdings by the Governments of both Abu Dhabi and Dubai. The major shareholders of UNB are the Ministry of Finance, Government of Abu Dhabi (40%), Abu Dhabi Investment Council (10%) and the Government of Dubai (10%). The remaining 40% of the shares are held by the general public. The shares of UNB are listed on the Abu Dhabi Securities Market.
UNB has adopted the total quality management concepts and methodologies, quality management systems and a business excellence framework. A strong testament to this was when the Bank won the 2004 / 2005 Sheikh Khalifa Excellence Award (SKEA), Gold category for the financial sector, and the 2005 Dubai Quality Award (DQA).
In 2002, UNB became the first bank of its size in the Middle East to be ISO 9001:2000 (Certified by Lloyds Register of Quality Assurance for Quality Management Systems under the terms set out by the United Kingdom Accreditation Service – UKAS – scheme.) certified across its entire operations in the UAE. The Bank has since received full ISO 9001:2000 recertification in 2005.
To find out more about Union National Bank and the services and products offered please visit one of our branches or log on to our website www.unb.com.
