Union National Bank said its fourth-quarter profit increased by 29 per cent as money set aside to cover bad debt dropped and operating income rose.
Profit in the three months to the end of December came in at Dh251 million compared with Dh195m in the fourth quarter of 2015, the bank said.
Net impairment charges fell to Dh313m in the fourth quarter of 2016 versus Dh395m in the previous year, it said.
Operating income rose by 5 per cent to Dh905m versus Dh862m a year earlier.
“2016 was a challenging year which saw slowing credit growth and higher funding costs for GCC banks due to tighter liquidity conditions,” said Mohammad Nasr Abdeen, the bank’s chief executive.
“In the backdrop of tough market conditions, UNB has delivered consistent results driven by steady business growth and prudent risk and cost management.”
Still, Shabbir Malik, a Dubai-based banking analyst at the Egyptian investment bank EFG Hermes, said that the quarterly net profit came in below his expectation of Dh310m because of higher than expected provisioning.
The collapse in the price of oil starting in the summer of 2014 has reduced demand for loans and increased the level of debt defaults among UAE banks across the board.
The board has recommended a 20 per cent cash dividend subject to shareholder approval.
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Earnings reports
■ ADIB fourth-quarter profit lower on bad debt provisioning
■ Aldar fourth-quarter profit dips 1 per cent amid 'softer operating market'
■ Quarterly profit slips 9% for Amanat Holdings
■ Arkan Building Materials annual profit declines 25%
■ Damac Properties' fourth-quarter net profit rises 1.3%
■ Drake & Scull's 2016 net loss narrows to Dh787 million
■ Du fails to offset royalty payment rise as profit falls
■ Emaar Properties fourth-quarter net profit up 56%
■ Etisalat profit edges up on growing UAE revenue
■ Manazel Real Estate profit rises 16% in second half
■ Marka will continue with cost-cutting after second straight annual loss
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mkassem@thenational.ae
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The Bloomberg Billionaire Index in full
1 Jeff Bezos $140 billion
2 Bill Gates $98.3 billion
3 Bernard Arnault $83.1 billion
4 Warren Buffett $83 billion
5 Amancio Ortega $67.9 billion
6 Mark Zuckerberg $67.3 billion
7 Larry Page $56.8 billion
8 Larry Ellison $56.1 billion
9 Sergey Brin $55.2 billion
10 Carlos Slim $55.2 billion
The specs
Engine: Dual 180kW and 300kW front and rear motors
Power: 480kW
Torque: 850Nm
Transmission: Single-speed automatic
Price: From Dh359,900 ($98,000)
On sale: Now
Bert van Marwijk factfile
Born: May 19 1952
Place of birth: Deventer, Netherlands
Playing position: Midfielder
Teams managed:
1998-2000 Fortuna Sittard
2000-2004 Feyenoord
2004-2006 Borussia Dortmund
2007-2008 Feyenoord
2008-2012 Netherlands
2013-2014 Hamburg
2015-2017 Saudi Arabia
2018 Australia
Major honours (manager):
2001/02 Uefa Cup, Feyenoord
2007/08 KNVB Cup, Feyenoord
World Cup runner-up, Netherlands
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
The biog
Name: Greg Heinricks
From: Alberta, western Canada
Record fish: 56kg sailfish
Member of: International Game Fish Association
Company: Arabian Divers and Sportfishing Charters
Skewed figures
In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.
Tuesday's fixtures
Kyrgyzstan v Qatar, 5.45pm
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