UAE’s FAB profit beats estimates on strong growth in non-funded income

First Abu Dhabi Bank (FAB), the United Arab Emirates’ biggest lender by assets, beat first-quarter profit estimates on Tuesday, boosted by strong growth in non-interest income from fees and commissions.

The results come as FAB undergoes a restructuring aimed at strengthening its business in the Gulf and boosting shareholder return, according to sources.

Read-FAB reports Dhs17.1bn in net profit for 2024

Under the reorganisation, FAB is splitting its operations into four new divisions and appointed Citi dealmaking veteran Linos Lekkas as its new head of investment banking, sources told Reuters last month.

The restructuring at FAB, headed by Hana Al Rostamani since 2021, follows a series of senior management departures including its former head of global markets and chief operating officer earlier this year.

The company said that it had reorganized its operating segments during the January-March period.

Net interest income climbed 3 per cent to Dhs5bn ($1.36bn) in the quarter ended March 31, while non-interest income jumped 22 per cent to Dhs3.8bn.

Fees and commissions income rose 23 per cent in the quarter versus a year earlier.

Net profit rose 23 per cent to Dhs5.13bn, beating analysts’ average expectations of Dhs4.24bn, according to data compiled by LSEG.

The bank’s total assets rose 6 per cent to Dhs1.31tn.