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UAE’s largest lender First Abu Dhabi Bank posts 5% rise in Q2 profit

UAE’s largest lender First Abu Dhabi Bank posts 5% rise in Q2 profit

The lender said it expects mid-single digit profit growth and high-single digit growth in loans for 2019

First Abu Dhabi Bank, the largest bank in the United Arab Emirates, on Wednesday reported a 5 per cent rise in second-quarter net profit, boosted by higher non-interest income.

The results added to signs that top banks in the UAE are managing to withstand strains from a sluggish economy and a property downturn in Dubai.

Emirates NBD, the UAE’s second-biggest lender, earlier said second-quarter net profit rose 80 per cent to Dhs4.74bn, partly boosted by an asset sale.

Read: Dubai lender Emirates NBD allowed to open 20 more branches in Saudi

FAB made a net profit of Dhs3.2bn ($872m) in the three months ending June 30, compared to Dhs3.06bn in the prior-year period, it said in a statement.

It said it expects mid-single digit profit growth and high-single digit growth in loans for 2019.

Non-interest income – comprising fees and commission and foreign exchange income – in the second quarter grew 9 per cent to Dhs1.85bn, while net interest income was up 2 per cent to Dhs3.3bn.

Loans and advances grew to Dhs366bn as of June 30 from Dhs353bn as of Dec. 31, 2018. Deposits totalled Dhs462bn as of June 30 versus Dhs465bn as of Dec. 31, 2018.

FAB said its board had proposed removing the foreign ownership limit cap of 40 per cent to attract more foreign capital.

The move is subject to approval from regulatory authorities in the UAE.

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