UNB Expects 7-10% Growth In Profit In 2018

Abu Dhabi

Union National Bank expects 7 to 10 per cent increase in profit in 2018 on the back of a growing economy due to the rise in oil prices, its chief executive officer said in Abu Dhabi.

“Due to [the rise in oil prices], we are positive and expect the government to come up with new projects and spend more. This is realistic and a reasonable figure,” Mohammad Nasr Abdeen said, speaking to reporters after the Annual General Meeting, where the board approved a 20 per cent cash dividend.

The bank reported 4.7 per cent increase in its net profit for 2017, reaching Dh1.66 billion from Dh1.58 billion in 2016.

Speaking on loan growth, he said it is expected to grow between 5 to 7 per cent in 2018.

“We see better chance in 2018 due to stability in the economy,” he said, adding that the bank is not in a hurry to grow its loan book.

On overseas expansion, he said UNB is going to open five branches this year in Egypt, taking the total number to 48 branches. The Egypt operations posted a 111 per cent growth in profit in 2017.

“Egypt is a big economy, it is promising and is growing.” UNB also has a branch in China and another in Kuwait.

UNB also has a branch in Qatar but there are no plans to expand there further.

The bank has no immediate plans for fund raising after it recently issued a $500 million bond, he said.