|By TAP Staff| Union National Bank reported third-quarter profit that missed analyst estimates as impairment charges rose and fee and trading income declined.
Net income fell 12 percent to 480.6 million dirhams ($131 million), the Abu Dhabi-based bank said in a statement to the stock exchange on Sunday. Impairment charges jumped 57 percent to 199.8 million dirhams. Fee and commission income dropped 16 percent and the lender had a loss from currency and derivatives trading in the quarter versus a profit a year ago.
The increase in impairment charge is “due to higher provisions in the commercial business and increased provision coverage on the portfolio,” UNB said in a separate statement.
Commercial Bank International PSC also reported on Sunday a 28.6 million-dirham loss compared with 64.9 million-dirham profit a year ago. Impairment losses and provisions climbed 63 percent to 115.1 million dirhams.
Union National Bank’s loans grew 7 percent from a year ago to 69 billion dirhams and deposits surged 17 percent to 73.2 billion dirhams, according to the statement. Both Abu Dhabi and Dubai governments hold stakes in UNB.