By Ramy Sameeh
Abu Dhabi-Mubasher: Union National Bank (UNB), Abu Dhabi’s fifth largest bank by assets, is unlikely to see significant growth in 2016 earnings, said CEO Mohammad Abdeen.
On the sidelines of the general meeting held on Monday, Abdeen told reporters that he hopes the bank to maintain its earnings at the same level of 2015. “We don’t expect a leap in earnings this year.”
FY15 earnings reached AED 1.76 billion ($479 million), compared with AED 2.02 billion ($550 million) a year earlier.
“Credit growth may be lower in 2016 amid the current tough conditions of global economy,” Abdeen said.
The gulf’s banks see considerable pressures amid falling oil prices and the governments’ tendency to liquidate their banking assets.
However, the CEO ruled out any decline in deposits this year. “We have a good level of liquidity and don’t face problems despite tough conditions.”
The bank’s loan-to-deposit ratio dropped to 91% in December 2015, compared with 95% in the same period of 2014, according to a recent research by NBK Capital.
Abdeen also expected the bank to issue debts in case of boosting its business, adding that UNB does not have any plans to issue sukuk.
When asked about expansions abroad, the CEO said, “We plan to strengthen our foothold in the Egyptian market, and UNB will be the first GCC bank to open a branch in China before the end of June 2016.”
He added that the bank plans to open three new branches in Egypt, thus bringing the number of branches to nearly 43 before the end of the first quarter of 2016.
Translated by Abdul Maguid Aboshahla
