Union National Bank announces its Financial Results for the year 2004

Net Profits for the year 2004 increase by 20.4% reaching AED 452.91 million as at 31 December 2004, compared to Net Profits of AED 376.06 million for the same period in 2003. Operating Profits also increased substantially from AED 444.36 million in 2003 to AED 604.04 million in 2004, an increase of 35.9%.

The Bank's saw success in its aim of improving its Investments, Commissions and Expenses income which was evident from the increase in its Non-Interest Income of 52.3% from AED 201.47 million for the year 2003 to AED 306.98 million for the year 2004.

Loans and Advances increased significantly from AED 9.8 billion as at December 2003 to reach AED 16.2 billion as at 31 December 2004, representing a substantial growth of 65.7% over the past year. This had a positive effect on the Total Assets of the Bank, which increased by 40.8% rising from AED 17.1 billion to AED 24.1 billion for the same period.

Another substantial mover was the Customer Deposits which registered a 38.5% increase over 2003 figures, growing from AED 12.9 billion to AED 17.9 billion as at December 2004 showing that the advances and Customer Deposits growth was matched with a strong vote of confidence from all type of customers such as Borrowers, Investors and Depositors.

Operating expenses have increased marginally by 5.04% on a period-to-period basis reflecting the management's continued attention to maintaining cost efficiencies even as continuous growth is pursued in all kind of Bank's Business.

In Q3 2004, the Bank's Board of Directors approved plans for two new exciting and significant corporate actions to be undertaken. The first was the permitting of expatriates to own up to 40% of the Bank's stock. The second was the recommendation to split the Bank Stock to reduce the face value of each share from AED 10 to AED 1, which shall be carried out once approved by the Extraordinary General Assembly that shall be held soon. With this step, the Bank is looking forward to expanding the investors' base.

In its quest to achieve its 2003-2005 Mission statement 'to be a top quality bank and the best service provider in the UAE banking industry', UNB had launched several innovative and customer focused initiatives, such as the setting up of its new Investment Banking Division, which is dedicated to serve high net worth customers and assist them in finding the appropriate investment opportunities. Several quality initiatives have been undertaken that see the Bank coming closer to its customers and is meeting customer expectations on a pro-active basis.

UNB launched several new and innovative products during 2004, these included products such as the 'Car Equity Loan' which allowed the customer to pay for school fees, Home Furnishing and Rent loans as part of the customer's car loan package, and the 'X-tra Funds Package' which is a combination of OD limit & Instalment loan against Fixed Deposits, this package was developed for UAE Nationals & Expatriates running their own business. The Bank was also involved in infrastructure projects in the UAE and other GCC countries

In its continued efforts to improve the services to its customer base, UNB either refurbished or relocated a significant number of its branches, which resulted in the shifting of UNB's Khalidiya branch in Abu Dhabi and Ras Al Khaimah Branch, to their new improved locations. The Bank also refurbished its branch in Deira. The Shahama branch, together with the centralised Trade Finance Services Department, began their operations from UNB's own new building, whilst Al Dhafra Branch's operations from UNB's own building at that location commenced in October 2004. The Bank also opened its Habshan Pay Office which is located within the GASCO compound, to provide a convenient service to customers within that area. In August 2004, UNB established a new and dedicated DSSCB booth at Airport Road which is now fully functioning as a collection office.