UAE FAB's second quarter profit up 5%

EFG Hermes had forecast a net profit of 3.2 billion dirhams for the second quarter

  
First Abu Dhabi Bank head office situated at Khalifa Business Park in Abu Dhabi. Image used for illustrative purpose.

First Abu Dhabi Bank head office situated at Khalifa Business Park in Abu Dhabi. Image used for illustrative purpose.

First Abu Dhabi Bank/ Handout via Thomson Reuters Zawya

ABU DHABI: First Abu Dhabi Bank , the largest bank in the United Arab Emirates, on Wednesday reported a 5% rise in second-quarter net profit, boosted by higher non-interest income.

The results added to signs that top banks in the UAE are managing to withstand strains from a sluggish economy and a property downturn in Dubai.

Emirates NBD, the UAE's second-biggest lender, earlier said second-quarter net profit rose 80% to 4.74 billion dirhams, partly boosted by an asset sale.

FAB made a net profit of 3.2 billion dirhams ($872 million) in the three months ending June 30, compared to 3.06 billion dirhams in the prior-year period, it said in a statement.

It said it expects mid-single digit profit growth and high-single digit growth in loans for 2019.

Non-interest income - comprising fees & commission and foreign exchange income - in the second quarter grew 9% to 1.85 billion dirhams, while net interest income was up 2% to 3.3 billion dirhams.

Loans and advances grew to 366 billion dirhams as of June 30 from 353 billion dirhams as of Dec. 31, 2018. Deposits totalled 462 billion dirhams as of June 30 versus 465 billion dirhams as of December 31, 2018.

FAB said its board had proposed removing the foreign ownership limit cap of 40% to attract more foreign capital.

The move is subject to approval from regulatory authorities in the UAE. (Reporting By Stanley Carvalho, editing by Deepa Babington)


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