According to Bloomberg, UNB recorded net profit of AED470mn for 2Q16, up 5% Q-o-Q, but down 17% Y-o-Y. The bank’s profit came in ahead of our estimate of AED410mn and Bloomberg consensus of AED386mn. The earnings beat was driven by lower-than-expected provisioning, likely due to release of provision reserves. UNB’s provisioning at AED114mn was down 11% Y-o-Y and lower than our estimate of AED150mn. Net interest income, which weakened sharply in 1Q16,  appears to have stabilised sequentially. (Earnings release, Shabbir Malik, Murad Ansari)   Union National Bank: AED4.46 as of 14 July 2016, Rating: Neutral, FV: AED3.80 per share, MCap: USD3,344mn, UNB UH / UNB.AD