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The UAE biggest lender First Abu Dhabi Bank (FAB) posted a Q3 2022 net profit of 2.9 billion dirhams ($790 million), down 24% as the lender warned of looming global economic headwinds.
Earnings per share for the quarter came in at AED0.25 compared with AED0.34 in the year-ago period.
The net profit, however, came slightly above analysts' mean estimate of AED2.86 billion, according to data compiled by Refinitiv's Eikon.
Impairments for the quarter were 13% lower year-on-year (y-o-y) at AED694 million, but were 19% higher on a sequential quarter basis, the banks said in a regulatory filing on the Abu Dhabi Securities Exchange on Wednesday.
The provision coverage was at 103% while asset quality metrics improved with NPL ratio at 3.4%.
Operating income was AED5.49 billion, 14% lower y-o-y, while operating profit was 19% lower at AED3.89 billion.
Customer deposits were at AED746 billion, up 21% year-to-date with current account savings account (CASA) balances 4% up at AED300 billion.
FAB's CEO Hana Al Rostamani, said: "Looking ahead, the increasingly challenging global backdrop calls for caution, with recessionary risks looming over several economies.”
“As we navigate these headwinds, we are nevertheless confident in the resilience of this region, and we remain very well placed to deliver market-leading shareholder returns while being an engine for the region’s economic growth and diversification,” she added.
The bank has total assets of over AED1.1 trillion as of September-end 2022.
For the nine-month period, FAB's net profit was 19% higher on year at AED10.9 billion.
(Reporting by Brinda Darasha; editing by Seban Scaria)
