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The UAE’s biggest lender First Abu Dhabi Bank (FAB) posted a Q3 2024 net profit of 4.46 billion dirhams ($1.2billion), 5% higher than in the year-ago period on higher revenue growth that offset a jump in impairment charges.
The net profit easily beat analysts’ mean estimate of AED 4.06 billion, according to LSEG data.
Operating income was AED 8.20 billion, up 18% versus the prior-year period.
Impairment charges for Q3 were 50% higher year-on-year (YoY) at AED 909 million while operating expenses also rose 9% YoY to AED 1.98 billion.
Net interest margin (NIM), a key measure of a bank’s profitability, was 1.89% for the quarter, 7 basis points (bps) lower on the sequential quarter and 8bps lower YoY as the “pricing was offset by the impact of higher cash reserve requirements, increased central bank placements, and the 50bps benchmark rate cut over the period”.
The banking group made a nine-month net profit of AED 12.9 billion, up 4% YoY.
Total assets grew 5% year-to-date and 4% YoY to AED 1.2 trillion, the bank said in a regulatory filing on the Abu Dhabi Securities Exchange on Friday.
(Reporting by Brinda Darasha; editing by Seban Scaria)
