By: Ramy Sameeh
Abu Dhabi – Mubasher: Union National Bank, 50% owned by the Abu Dhabi government, has no plans to merge with another bank, according to the bank’s CEO Mohammed Nasr Abdeen.
“There are no procedures, official statement, or plans announced regarding a merger with another bank, and all what is circulated is totally false,” Abdeen told journalists on Wednesday.
Last November, there were news about Abu Dhabi planning to merge Abu Dhabi Commercial Bank (ADCB) and Union National Bank (UNB), and also combine Abu Dhabi Islamic Bank with Al-Hilal Bank.
“The bank is expected to achieve a relatively better performance this year compared to 2016,” he said, adding that “the banking sector is expected to grow by 5-10%”.
“2016 was a tough year for the banking sector due to many global and regional factors related to economy, in line with lower oil prices,” Abdeen noted.
“However, the recovery of oil prices at the moment may contribute to improving the overall circumstances,” he added.
The bank has no plans to issue new bonds. However, it may issue bonds under its $3 billion bond programme if needed, he added.
In October, UNB successfully priced a 5-year senior unsecured bond worth AED 2.20 billion ($600 million). The order-book was three times oversubscribed.
The bank has no intention to enter any new markets as it is focusing on its current markets, especially the UAE. It has one branch in Qatar and another in Kuwait.
UNB is working on launching its first branch in China within one or two months, the CEO said.
The bank will continue to expand in Egypt, it being "a good market for us”, he said, noting that "it has 42 branches in the country, with expectations to open new branches in 2017".
“We have enough branches in the UAE, and there is no need to launch new ones,” Abdeen said.
“UNB’s operating expense ratio reached 32.5%, the best ratio among its peers,” he explained, adding that the bank has no plans to lay off employees to cut costs.
Translated by: Julian Nabil
