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The UAE’s biggest lender First Abu Dhabi Bank (FAB) posted a Q1 2024 net profit of 4.2 billion dirhams ($1.14 billion), 6% higher year-on-year (YoY) on strong revenue growth.
The net profit topped analysts’ mean estimate of AED 3.59 billion, according to LSEG data.
Total operating income was AED 8 billion, up 18% YoY, the lender said in a filing on Abu Dhabi's ADX on Wednesday.
"The strong revenue performance was driven by balance sheet growth, higher NIMs and robust non-funded income," said Lars Kramer, Group Chief Financial Officer.
The strong revenue growth also enabled the bank to largely offset the impact of the UAE corporate tax and to maintain robust provision coverage levels, he added.
Net interest income (NII) was AED 4.9 billion, up 11% YoY supported by strong business volumes across sectors, products and geographies.
Net interest margin (NIM) was 1.92% widening 18bps YoY "reflecting higher rates and discipline on both asset and liability pricing".
Non-interest income grew 33% YoY to AED 3.1 billion, contributing 39% to group revenue, up from 35% in the year-earlier period.
Net impairment charges were at AED 1 billion, up 28% YoY.
Total assets grew 4% YoY, crossing AED 1.2 trillion ($336 billion) as of March-end 2024.
Customer deposits crossed AED 800 billion, while loans, advances and Islamic financing were up 7% YoY to AED 508 billion.
(Reporting by Brinda Darasha; editing by Seban Scaria)
