Abu Dhabi - Arabstoday
Union National Bank\'s reported an small increase in first quarter net profit on Monday, beating analyst forecasts, helped by an increase in net interest income and income from Islamic financing. Net profit of the bank rose 3.2 percent to AED471.1m (US$128.26m) compared to AED456.36m in the year-ago period, UNB said in a bourse statement. Analysts polled by Reuters earlier this month forecast an average profit of AED443.75m. UNB shares were trading 2.4 percent higher at 0722 GMT. Net interest income and net income from Islamic financing rose 16.2 percent in the first quarter compared to the same period in 2011. The fifth largest bank by market capitalisation in Abu Dhabi booked an impairment charge of AED116.5m in the first quarter versus AED69.9m in the year ago period, the statement said. \"The very comfortable liquidity and the solid capital adequacy position would enable the group to support lending activity as the economic activity gathers momentum in 2012 and beyond,\" Mohammed Nasr Abdeen, CEO said in the statement. The bank is one of the six institutions on the unsecured creditor committee for the US$10bnrestructuring of Dubai Group. Deposits at the bank rose 6.4 percent year on year to total AED63.4bn at March 31, while net loans and advances rose 3.2 percent.