First Abu Dhabi Bank, the United Arab Emirates' biggest lender by assets, beat third-quarter profit estimates on Friday, helped by factors such as "increased client activity", which boosted revenue.
Net profit rose 5% to 4.46 billion dirhams ($1.21 billion) in the three months ended Sept. 30 © Mena Today
First Abu Dhabi Bank, the United Arab Emirates' biggest lender by assets, beat third-quarter profit estimates on Friday, helped by factors such as "increased client activity", which boosted revenue.
Net profit rose 5% to 4.46 billion dirhams ($1.21 billion) in the three months ended Sept. 30, from 4.26 billion dirhams a year earlier, topping analysts' mean expectations of 3.97 billion dirhams, according to LSEG data.
Banks in the UAE have, in recent years, benefited from higher interest rates and also profited from the Gulf region's growth plans as governments boost investment to diversify away from oil and tap different income sources.
"Strong business momentum supported by robust economic conditions were reflected in volume growth, rising revenues and diversified income streams," CFO Lars Kramer said in a statement.
The bank, which is 37.9% owned by Abu Dhabi sovereign wealth fund Mubadala, said its operating income rose 18% to 8.2 billion dirhams in the third quarter, with significant growth in both net interest and non-interest income.
Net interest income - the difference between earnings on loans and payouts on deposits - was up 7% to 4.89 billion dirhams in the quarter from a year earlier.
However, net interest margin fell by 7 basis points from the previous quarter to 1.89%, impacted by the UAE central bank's move to cut key interest rates last month, after the U.S. Federal Reserve cut rates by half a percentage point.
Most regional currencies are pegged to the U.S. dollar.
FAB said loans, advances and Islamic financing were up 10% to 528 billion dirhams in the first nine months from a year earlier, while customer deposits grew 4% to 820 billion dirhams.
Its total assets grew 4% to 1.2 trillion dirhams as of September end, driven by diversified lending growth and an expansion in the investments portfolio, it added.
Reporting by Federico Maccioni
Ras Al Khaimah authorities said on Saturday that all beaches in the emirate would be closed until further notice, a day after an offshore oil leak prompted beach closures in neighbouring Umm Al Quwain and Sharjah.
Abu Dhabi technology group G42 and five of its companies signed memoranda of understanding with Greek public and private partners on Saturday during a UAE trade mission to Athens, covering AI infrastructure, government services, smart cities and life sciences.
Dubai’s Museum of the Future received more than 20,000 completed applications within 48 hours of launching its “Future Perfects” recruitment campaign, while the campaign website recorded 42,000 visits.
To make this website run properly and to improve your experience, we use cookies. For more detailed information, please check our Cookie Policy.
Necessary cookies enable core functionality. The website cannot function properly without these cookies, and can only be disabled by changing your browser preferences.