First Abu Dhabi Bank posts Dh2.6 billion Q3 profit

FAB was created after the merger of National Bank of Abu Dhabi and First Gulf Bank

dubai - First Abu Dhabi Bank (FAB), the largest bank in the UAE, on Wednesday said its net profit for the third quarter of 2017 fell 18 per cent to Dh2.6 billion as against Dh3.18 billion for the same period last year due to a decline in operating income.

The bank's nine-month profit dropped four per cent to Dh8.09 billion as against Dh8.46 billion during the comparative period in 2016.

Its Q3 earnings per share (EPS) fell from Dh1.13 last year to Dh0.92 while nine-month EPS declined from Dh1 to Dh0.95. Net impairment charges in the third quarter fell 21 per cent to Dh562 million.

"As we continue to build strong foundations to support the long-term sustainable growth of our franchise, we are on track to meet our targets for the current year and our strong capital buffers provide us with ample room to deliver top returns for our shareholders," said Abdulhamid Saeed, Group CEO, FAB.

FAB was created after the merger of the National Bank of Abu Dhabi and First Gulf Bank. The merger was completed in April this year. The bank is realising the benefits of a merger as operating expenses in the third quarter this year fell nine per cent to Dh1.34 billion from Dh1.47 billion in Q3 last year.

The bank's operating income dropped 16 per cent year on year during the third quarter this year to Dh4.6 billion.

"FAB's performance in the first nine months of 2017 demonstrates the group's resilience as it continues to achieve integration and deliver solid results against an operating backdrop that is improving, yet remains challenging. As we approach the end of 2017, I am very pleased with the excellent progress we have made in our integration journey," said Saeed.

He pointed out that FAB is dominating the GCC and Mena loan league tables' year to date with a 14.3 per cent and 12.7 per cent market share, respectively. As of the end of September 2017, the group had a loans-to-deposits ratio of 86.6 per cent. Its total assets fell one per cent to Dh644.1 billion at the end of September 30, 2017, as against Dh649.1 billion during the corresponding period last year.

Listed on the Abu Dhabi Securities Exchange, FAB's stocks were unchanged at Dh10.5 on Wednesday with 2.65 million shares changing hands worth Dh27.79 million.

- waheedabbas@khaleejtimes.com