|21 May, 2019

Abu Dhabi banks report robust profits in Q1

Nine listed-banks have reported a net profit of AED 5.63 billion for the first quarter of 2019

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

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

First Abu Dhabi Bank / Handout via Zawya

Abu Dhabi – Mubasher: Most of the banks listed on the Abu Dhabi Securities Exchange (ADX) have posted solid profits for the three-month period ended 31 March 2019.

Profits of the lenders operating in the oil-rich emirate were backed by an increase in revenue, as well as a slump in liabilities and expenses, indicating that the ADX-banks will maintain positive performance until the end of the year.

According to a poll conducted by Mubasher based on the ADX’s data, nine listed-banks have reported a net profit of AED 5.63 billion for the first quarter of 2019, versus AED 5.49 billion in Q1-18.

Rapid growth

The ADX-listed banks have posted solid financial results in Q1-19, backed by the rapid growth in the UAE’s economy, mainly the non-oil sector, CEO of Al Safwa Mubasher Financial Services told Mubasher.

The banks are expected to maintain generating strong profits due to the increased spending on infrastructure projects for hosting Expo 2020 despite facing obstacles such as liquidity standards and mergers, Ehab Rashad said.

Available liquidity ratios in the UAE’s sectors have improved recently, indicating a remarkable growth over the coming months that will accelerate the country’s economic growth rate, Rashad pointed out.

He also expected most of the banks to tend to lending and granting facilities to some of the strategic sectors that need long-term financing, especially the real estate sector.

Q1 profits

First Abu Dhabi Bank (FAB) has recorded the highest profits among the ADX-listed banks in Q1-19, with a net profit of AED 3.1 billion, up 4% year-on-year.

Prior to the merger with Union National Bank (UNB) and the acquisition of Al Hilal Bank, Abu Dhabi Commercial Bank (ADCB) has logged a net profit of AED 1.15 billion in Q1-19, which brings it to the second place in terms of profitability among the ADX-listed banks.

Moreover, the Abu Dhabi Islamic Bank (ADIB) came in the third spot, with AED 600.3 million in net profit for the January-March period of 2019, up 1.7% from AED 590.4 million in the quarter of 2018.

However, United Arab Bank has reported the lowest profits in Q1-19, which has not exceeded AED 21.6 million, down 40% from AED 35.9 million in Q1-18.

Meanwhile, the National Bank of Ras Al Khaimah (RAKBank) topped the banks in terms of profits growth rate as its profits jumped 32% year-on-year in Q1-19 to AED 269.7 million, compared to AED 204 million.

Translated by: Mai Ezz El-Din

Source: Mubasher Exclusive

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