Union National Bank (UNB), 50 per cent owned by the Abu Dhabi government, posted a 27 per cent drop in first quarter net profit on Thursday.

The fifth largest lender in the emirate by assets reported a net profit attributable to equity holders of the bank of Dh447 million ($121.76 million) in the three months to March 31. This was down from Dh611 million a year earlier, according to its financial statement.

Two analysts polled by Reuters had forecast UNB would make a quarterly profit of Dh314.00 million  and Dh454.30 million respectively

The bank's total net profit for the period was Dh450 million, down from Dh615 million , according to a statement from the bank released minutes before its more detailed quarterly financial report was published.

The bank's quarterly net interest income dropped 12 per cent to Dh623 million and non-interest income fell 17 per cent to Dh190 million .

Impairment charges on bad loans rose 49 per cent to Dh85 million .

In February, the bank's chief executive said UNB does not expect to achieve much growth in profits or lending in 2016 and could tap the bond market this year to raise funds. – Reuters