Monday 24 January 2011

Nomura sees UNB with $354mln Dubai World exposure - Maktoob News

UAE lender Union National Bank (UNB) may have up to 1.3 billion dirhams ($353.9 million) exposure to state-owned conglomerate Dubai World, Nomura said in a research report on Monday.

Abu Dhabi-based UNB may not have booked any specific provisions for its exposure to the troubled entity, the brokerage said, forecasting the lender could need to book provisions of 260 million dirhams, assuming a 20 percent impairment.

"Management has yet to announce the bank's exposure to Dubai World. We also believe that UNB has not yet booked any specific provisions related to this entity," Nomura analyst Tarik El Mejjad said in a research note.

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