* Q3 profit 406.64 mln dhs vs 480.59 mln dhs yr-ago
* Net int income down 13 pct in Q3 y-o-y
* Loans & advances up 7 pct, deposit growth up 2 pct
(Adds Q3 net profit attributable figure, details)
ABU DHABI, Oct 17 Union National Bank,
50 percent owned by the Abu Dhabi government, on Monday posted a
15 percent drop in third-quarter net profit, missing analysts'
forecasts as interest income fell.
It was the sixth successive quarter of weaker earnings,
squeezed by government spending cuts in the United Arab Emirates
and tighter liquidity due to lower oil prices.
The fifth largest lender in the emirate by assets reported
a net profit of 410 million dirhams ($110 million) in the three
months to Sept. 30, compared to 483 million dirhams in the same
period a year ago.
Net profit attributable to equity holders in the third
quarter was 406.64 million dirhams versus 480.59 million dirhams
in the prior-year period, according to a bourse statement.
The average forecast of three analysts polled by Reuters had
been for a quarterly profit of 456.7 million dirhams.
Net interest income and income from Islamic financing in
the quarter ending Sept. 30 fell 13 percent year-on-year to
667.20 million dirhams.
Net interest income was squeezed by the higher costs of
deposits and also bad loans from the small and medium-sized
enterprise portfolio, the bank said.
Loans and advances reached 73.6 billion dirhams for the nine
month period ending September 2016, up 7 percent from the same
period of last year.
Customer deposits edged up 2 percent to 74.8 billion dirhams
over the same time frame.
Earlier this month, UNB sold a $600 million, five-year
international bond at 170bp over mid-swaps
$1 =3.6723 UAE dirham)
(Reporting by Stanley Carvalho; Editing by Ruth Pitchford)