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The UAE’s biggest lender First Abu Dhabi Bank (FAB) posted a Q2 2024 net profit of 4.26 billion dirhams ($1.16 billion), a shade higher compared with the AED 4.21 billion in the year-ago period, as a rise in impairment charges offset higher interest income.
Lars Kramer, Group Chief Financial Officer, said: "While lending momentum was healthy year-to-date, we have also benefited from incremental improvements in margins for the fourth consecutive quarter..."
The net profit, however, easily beat analysts’ mean estimate of AED 3.98 billion, according to LSEG data.
Impairment charges for Q2 was 11% higher year-on-year (YoY) at AED 896 million while operating expenses rose 11% YoY to AED 1.9 billion.
Net interest income for the quarter was 11% higher at AED 4.9 billion, while non-interest income rose 19% to AED 2.8 billion.
Loans, advances and Islamic financing were up 6% both year-to-date (YTD) and YoY to AED 513 billion, reflecting "market share gains across key segments and geographies amid a robust UAE economy", the lender said on ADX.
Customer deposits grew 1% YTD and 3% YoY to AED 766 billion.
Meanwhile, H1 net profit was 3% higher YoY at AED 8.4 billion.
CEO Hana Al Rostamani said the bank remained on track to meet 2024 and medium-term guidance.
(Reporting by Brinda Darasha; editing by Seban Scaria)
