Union National Bank announces profit of AED 1,441 million for the nine month period ended 30 September 2013

Transcription

1 Unin Natinal Bank annunces prfit f AED 1,441 millin fr the nine mnth perid ended 30 September 2013 Operating prfit fr nine mnth perid ended 30 September 2013 increased by 1.5% ver prir perid t reach AED 1,836 millin Lans and advances f AED 60.6 billin as at 30 September 2013, up by 7.1% year-nyear Custmers depsits f AED 64.3 billin as at 30 September 2013, up by 16.3% yearn-year Ttal assets f AED 85.8 billin as at 30 September 2013, up by 10.0% year-n-year Strng liquidity psitin with lan t depsit rati f 94.2% as at 30 September 2013 Imprving asset quality metrics with NPLs t grss lans & advances f 4.3% and lan lss cverage f 85.7% as at 30 September 2013 Cst t incme rati f 25.4%, cnsistently amngst the best in the UAE banking sectr Slid Overall and Tier 1 capital adequacy rati f 19.7% and 18.5% respectively as at 30 September 2013 Financial highlights 30-Sep-13 AED Billin 30-Sep-12 Variance % Ttal assets % Lans and advances % Custmers depsits % Equity attributable t equity hlders f the Bank % YTD 30-Sep-13 AED Millin YTD 30-Sep-12 Variance % Operating incme 2,462 2, % Operating prfit 1,836 1, % Prfit fr the perid 1,441 1, %

2 Key Financial Indicatrs fr the nine mnth perid ended 30 September 2013 and 30 September 2012: YTD Sep-2013 YTD Sep-2012 Return n Average Equity (ROAE)* 15.4% 17.0% Return n Average Assets (ROAA)* 2.2% 2.4% * Annualized Earnings per Share AED 0.50 AED 0.51 Cst / Incme rati 25.4% 24.0% Unin Natinal Bank (UNB), ne f the leading banks based in the United Arab Emirates, recrded a cnslidated prfit f AED 1,441 millin fr the nine mnth perid ended 30 September Cmmenting n the results, Mr. Mhammad Nasr Abdeen, Chief Executive Officer, Unin Natinal Bank said that The UNB Grup reprted satisfactry verall results fr the nine mnth perid ended 30 September The financial perfrmance was underpinned by cnsistent prfitability, sustainable business grwth, imprving asset quality and strng liquidity and capital psitin. He further added that The UNB Grup has been significantly investing n grwing its franchise, augmenting its branch netwrk with 11 new branches being pened during the current year with the ttal number f branches expected t be arund 110 branches and ffice by the year-end in the UAE, Egypt, Kuwait, Qatar and China, upgrading its technlgy infrastructure, enhancing its prduct and service ffering whilst remaining reslute n its jurney f Quality and Service Excellence. Financial Review The perating prfit fr the nine mnth perid ended 30 September 2013 f AED 1,836 millin (nine mnth perid ended 30 September 2012: AED 1,808 millin), was up by 1.5% cmpared t that fr the prir perid. The increase in perating prfit was driven by a grwth in perating incme while cntinuing t invest in grwing the business franchise. The perating incme fr the nine mnth perid ended 30 September 2013 f AED 2,462 millin (nine mnth perid ended 30 September 2012: AED 2,379 millin) was up by 3.5% cmpared t that fr the prir perid driven by an increase in net interest incme and net incme frm Islamic financing which was up by 4.6% t AED 1,989 millin (nine mnth perid ended 30 September 2012: AED 1,901 millin) ffset by a nminal reductin in nn-interest incme by 1.0% t AED 473 millin (nine mnth perid ended 30 September 2012: AED 478 millin). The increase in net interest incme and net incme frm Islamic financing was primarily due t higher net interest margin which imprved by 3 bps t 3.21% fr the nine mnth perid ended 30 September 2013 and vlume grwth. The business grwth led t a rbust increase in net fee and cmmissin, up by 12.0% t reach AED 364 millin (nine mnth perid ended 30 September 2012: AED 325 millin), ffset

3 by lwer gains frm trading and nn-trading financial instruments leading t a marginal decrease in the nn-interest incme. The lans and advances increased by 7.1% year-n-year t reach AED 60.6 billin as at 30 September 2013 (30 September 2012: AED 56.6 billin) and grew by 5.8% cmpared t the prir year-end (31 December 2012: AED 57.3 billin). The custmers depsits grew strngly by 16.3% year-n-year t reach AED 64.3 billin as at 30 September 2013 (30 September 2012: AED 55.3 billin) and were up by 1.4% as cmpared t the prir year-end (31 December 2012: AED 63.4 billin). The liquidity psitin was strng as evidenced by the lan t depsit rati f 94.2% as at 30 September 2013 (30 September 2012: 102.4%). The advances t stable resurces rati calculated as per the Central Bank f the UAE guidelines was at a cmfrtable level f slightly ver 80% as at 30 September 2013 against the regulatry requirement f less than 100%. In line with the Grup s strategy t sustainably grw revenue streams and prfit in the future, nging investments are being made in the varius enabling areas. Significant IT and nn-it related investments have included the implementatin f a new cre banking sftware and Middleware and pening f eleven branches in the UAE and Egypt. Operating expenses fr the nine mnth perid ended 30 September 2013 increased by 9.6% ver the same perid prir year t AED 626 millin (nine mnth perid ended 30 September 2012: AED 571 millin). Despite increase in perating expenses, the efficiency rati (cst t incme) at 25.4% fr the nine mnth perid ended 30 September 2013 (nine mnth perid ended 30 September 2012: 24.0%) remained amngst the best lcally in the UAE banking industry. During the current fiscal perid, the asset quality trend has shwn cnsistent imprvement with the rati f nn-perfrming lans and advances t grss lans and advances, imprving by 40 basis pints t 4.3% as at 30 September 2013 (31 December 2012: 4.7%). The verall lan lss cverage imprved by 710 basis pints t 85.7% as at 30 September 2013 (31 December 2012: 78.6%). Cntinuing with the Grup s plicy t maintain prvisins at a prudent level, the impairment charge fr the nine mnth perid ended 30 September 2013 increased by 16.7% t AED 377 millin (nine mnth perid ended 30 September 2012: AED 323 millin). The general prvisins represented 1.3% f the credit risk weighted assets as at 30 September 2013 (31 December 2012: 1.4%) as against a Central Bank f the UAE requirement f 1.5% t be met by 31 December The Grup cntinued t maintain strng levels f capital adequacy with the Overall and Tier I capital adequacy rati (CAR) f 19.7% and 18.5% respectively as at 30 September 2013 (31 December 2012: Overall CAR % and Tier I CAR 18.5%). Bth the ratis cntinue t be well abve the minimum rati f Overall CAR and Tier 1 CAR f 12% and 8% respectively set by the Central Bank f the UAE. The annualized return n average equity, excluding Tier 1 capital ntes was 15.4% fr the nine mnth perid ended 30 September 2013 (nine mnth perid ended 30 September 2012: 17.0%) and the annualized return n average assets was 2.2% fr the nine mnth perid ended 30 September 2013 (nine mnth perid ended 30 September 2012: 2.4%).

4 Awards and acclades Over the last several years, the Bank has been a recipient f varius awards and acclades. Listed belw are sme f the prminent awards / acclades wn by the Bank in 2013: Dubai Quality Award (DQA) Gld categry fr 2012 and becming the first rganizatin in the cuntry t win the tp Quality Award in Dubai (DQA Gld) as well as the tp Quality Award in Abu Dhabi (Sheikh Khalifa Excellence Award Diamnd Categry) UNB CEO was awarded the Internatinal Millennium Award at the 2013 Eurpe Business Assembly Awards Presentatin held in Malta Tw prestigius awards at the 2013 Wrld Finance Banking Awards. Best Cmmercial Bank in UAE and Banker f the Year Middle East fr UNB CEO Mst Admired Service Prvider in Financial Sectr Award" at the Asian BFSI Leadership Awards Ceremny UNB CEO was cnferred with the CEO f the Year, Banking categry award at the 2013 CEO Middle East Awards 2013 ESQR Quality Achievements Award in the Diamnd Categry at an award ceremny held in Lndn, United Kingdm UNB CEO was awarded the prestigius internatinal award Queen Victria Cmmemrative Medal frm the Eurpean Business Assembly at an award Ceremny held at Mntreux, Switzerland Glden award fr Quality and Business Prestige presented by Otherways Internatinal Research and Cnsultants at an award ceremny held in Rme, Italy First Bank in the regin t be verified fr adpting the guidelines f ISO (handling f custmer cmplaints) by Llyd s Register Quality Assurance One f the first banks t establish, implement and verify enterprise wide risk management based n the guidelines f ISO 31000:2009 Best SME Card Award fr the "UNB Business Credit Card" and at the 2013 Banker Middle East Prduct Awards Best Premium Credit Card fr its "Platinum Credit Card" Internatinal Scrates Award in the Ecnmics and Business categry frm the Eurpean Business Assembly in the United Kingdm at an award ceremny held in Lndn, United Kingdm

5 Glden Award fr Excellence and Quality frm the Arab Organizatin fr scial respnsibility and Tatweej Academy fr Excellence and Quality in the Arab Wrld Platinum Technlgy Award fr Quality & Best Trade Name by Otherways Internatinal Research & Cnsultants at an award ceremny held in Berlin, Germany Amngst the Tp 10 ADX Cmpanies and recgnitin fr winning the SKEA Diamnd Award