FAB posts 16% profit rise as it pursues overseas expansion
Meanwhile ADIB reports profit up 4.5% on lower provisions and strong liquidity
First Abu Dhabi Bank, the UAE’s largest bank by assets, reported a 16 per cent increase in third quarter net profit with loans and deposits up amid plans to increase its presence overseas.
FAB, which was formed by the merger of National Bank of Abu Dhabi and First Gulf Bank last year, reported group net profit of Dh3 billion, exceeding the average estimate of Dh2.95bn of analysts polled by Bloomberg.
Net fees and commissions grew 7 per cent on the year-earlier period, while net loans and advances for the period were up 3 per cent and 8 per cent year-onyear respectively, led by “sustained momentum in corporate and investment banking”, the lender said.
“FAB’s performance demonstrates the fundamental strength of the bank, as we grew our franchise and cemented our position as the UAE’s largest listed company by market capitalisation,” said Abdulhamid Saeed, group chief executive of FAB.
The lender continues to grow its banking offerings in Egypt and this year completed its first debt capital markets transaction in Saudi Arabia. It plans to ramp up its overseas activities, Mr Saeed said.
“Our business expansion strategy continues to show promise as the bank manoeuvers to take advantage of growth opportunities abroad. We are confident that our expansion plans will enhance our regional presence,” he said.
Meanwhile, Abu Dhabi Islamic Bank, the emirate’s biggest Sharia-compliant lender, posted a 4.5 per cent net profit rise in the third quarter of 2018, as credit provisions and impairments improved and the UAE economy lifted, the bank said.
Group net profit increased to Dh589.5 million from a year earlier, while group net revenues rose slightly (0.2 per cent) to Dh1.4 billion. The results beat the Dh541.5m median estimate of analysts polled by Bloomberg.
“ADIB has continued to deliver consistent growth across the business…reflecting the continued success of our growth strategy,” said Khamis Buharoon, ADIB’s vice-chairman and acting chief executive.
“The UAE economy has proven resilient in recent years, and the ongoing investment in diversification will provide opportunity for ADIB to develop all its corporate and retail banking businesses in the coming years.”
Credit provisions and impairments for the quarter dropped by 29.2 per cent to Dh171.7m, while customer deposits decreased slightly by 0.6 per cent to Dh98.5bn.
ADIB’s total assets as of September 30 were Dh124.3bn, a 2.5 per cent increase on the year-earlier period. It maintained its position as “one of the most liquid financial institutions in the UAE”, the statement said, with a 79.6 per cent ratio of customer financing to deposits.
Earlier this summer ADIB shareholders approved a Dh1bn rights issue and the issuance of a Dh2.75bn sukuk, in line with its growth strategy.
Updated: October 22, 2018 05:39 PM