UAE's biggest lender FAB posts 19% jump in Q2 net profit

FAB posted a net profit of $783.87mln in the quarter ended June 30, up from 2.4 billion a year earlier

  
Image for illustrative purposes. First Abu Dhabi Bank head office situated at Khalifa Business Park Abu Dhabi.

Image for illustrative purposes. First Abu Dhabi Bank head office situated at Khalifa Business Park Abu Dhabi.

First Abu Dhabi Bank/ Handout via Thomson Reuters Zawya

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: saeed.azhar.reuters.com@reuters.net))


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