Update 1 - Abu Dhabi's UNB Q1 profit up, beats f'casts

Mon Apr 23, 2012 3:30am EDT

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(Adds detail)

* Q1 profit 471.1 mln dhs vs 456.4 mln dhs yr-ago

* Bank books 116.5 mln impairment charge in Q1

* Shares up 2.4 pct at 0725 GMT

ABU DHABI, April 23 (Reuters) - Union National Bank's reported an small increase in first quarter net profit on Monday, beating analyst forecasts, helped by an increase in net interest income and income from Islamic financing.

Net profit of the bank rose 3.2 percent to 471.1 million UAE dirhams ($128.26 million) compared to 456.36 million dirhams in the year-ago period, UNB said in a bourse statement.

Analysts polled by Reuters earlier this month forecast an average profit of 443.75 million dirhams.

UNB shares were trading 2.4 percent higher at 0722 GMT.

Net interest income and net income from Islamic financing rose 16.2 percent in the first quarter compared to the same period in 2011.

The fifth largest bank by market capitalisation in Abu Dhabi booked an impairment charge of 116.5 million dirhams in the first quarter versus 69.9 million dirhams in the year ago period, the statement said.

"The very comfortable liquidity and the solid capital adequacy position would enable the group to support lending activity as the economic activity gathers momentum in 2012 and beyond," Mohammed Nasr Abdeen, CEO said in the statement.

The bank is one of the six institutions on the unsecured creditor committee for the $10 billion restructuring of Dubai Group.

Deposits at the bank rose 6.4 percent year on year to total 63.4 billion dirhams at March 31, while net loans and advances rose 3.2 percent. ($1 = 3.6730 UAE dirhams) (Reporting By Stanley Carvalho; Editing by Rachna Uppal)

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