DUBAI - First Abu Dhabi Bank, the United Arab Emirates' biggest lender, posted on Wednesday a 19% rise in quarterly net profit, underpinned by sharp gains in its investments and derivatives and on higher fee income.
FAB posted a net profit of 2.8 billion dirhams ($783.87 million) in the quarter ended June 30, up from 2.4 billion a year earlier.
Arqaam Capital had forecast a net profit of 2.4 billion dirhams, while EFG Hermes had projected 2.5 billion dirhams.
The lender's operating income was boosted by a sharp jump in derivatives and investments of 1.4 billion dirhams in the second quarter, a surge from 200 million dirhams a year earlier.
Net fee and commission income rose by more than a fifth to 768.8 million dirhams.
Net interest income fell in a weak interest rate environment worldwide while impairment charges dropped amid signs of recovery from the COVID-19 pandemic fallout.
($1 = 3.6728 UAE dirham)
(Reporting by Saeed Azhar, Editing by Sherry Jacob-Phillips) ((Saeed.Azhar@thomsonreuters.com; +971 44536787; Reuters Messaging: email@example.com))