Dubai – Mubasher: Union National Bank (UNB) is expected to achieve a 7%-10% increase in net profit during 2018, CEO Mohammad Nasr Abdeen told journalists following the conclusion of an ordinary general meeting (OGM).

The loan portfolio is also expected to grow 5%-7%, Abdeen added, according to Al Bayan newspaper.

The introduction of a 5% value-added tax (VAT) in the UAE is not likely to affect the bank’s operations, given the smallness of the levied rate, the top official revealed.

The Abu Dhabi-listed bank complies with the UAE central bank’s decision on the tax absorption, Abdeen commented, as Al Bayan reported.

UNB plans to expand in Egypt by establlishing 5 new branches in the next two months, in addition to the existing 43.

Interest rates will probably rise in 2018, considering various forecasts stating that the Fed will increase the rate three or four times this year, the CEO noted.

Abdeen stressed that the bank is not planning to issue any bonds in 2018, adding that merger is currently off the table.

A merger is not bad; however we do not take it into account in the current period, he concluded.