Home Industry Finance First Abu Dhabi Bank joins Mideast lenders in raising provisions First Abu Dhabi Bank increased impairments to Dhs1.06bn ($289m) from Dhs467m a year ago by Bloomberg July 28, 2020 Abu Dhabi’s biggest lender joined its regional Gulf competitors in setting aside higher provisions to cover a spike in bad loans brought on by the coronavirus pandemic. First Abu Dhabi Bank increased impairments to Dhs1.06bn ($289m) from Dhs467m a year ago. That resulted in second-quarter profit dropping 25 per cent. Banks in the Gulf region are raising provisions to offset an expected increase in sour loans due to the twin shock of plunging oil prices and the coronavirus fallout. First Abu Dhabi Bank follows Qatar National Bank, Emirates NBD and Dubai Islamic Bank in increasing impairments charges. The challenges are renewing the prospect for further consolidation among banks in the Middle East, with potential mergers being discussed in Saudi Arabia and Qatar. First Abu Dhabi Bank was created with the merger of two banks in 2016. First Abu Dhabi Bank 2Q numbers: Profit – Dhs2.41bn vs Dhs3.22bn Net interest income – Dhs3.26bn vs Dhs3.3bn Non-interest income – Dhs1.53bn vs Dhs1.85bn Total operating income – Dhs4.8bn vs Dhs5.15bn Group CFO James Burdett: “In the context of a challenging and uncertain environment, we continued to build our provision buffers, leading to a substantial increase in impairment charges, while our high-quality portfolio and conservative asset mix are key differentiators” Ongoing focus on cost discipline also led to significant savings, with various initiatives underway to create future efficiencies “While economic activity is gradually resuming, we remain cautious as the shape and timing of the recovery remain uncertain” Tags First Abu Dhabi Bank Mideast provisions 0 Comments You might also like Abu Dhabi: FAB reports Dhs12.9bn in net profit for Jan-Sept ’24 Abu Dhabi wealth fund ADQ sells $2bn bond FAB posts record H1 profit of Dhs8.4bn amid strong revenue growth ‘Unfounded’: FAB dismisses reports of Yes Bank stake purchase