Cost cuts boost FAB profits in Q1

First Abu Dhabi Bank (FAB) on Sunday said its first-quarter 2018 net profit jumped 2 per cent to Dh3 billion due to cost disciplines and decline in impairment charges.

The bank's assets grew one per cent to Dh678 billion; while loans and advances and customer deposits also grew 2 per cent to Dh338 billion and Dh404 billion, respectively. The UAE's largest bank's earnings per share grew to Dh1.06 from Dh1.04 in first quarter of 2017.

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FAB's operating income plunged to Dh4.9 billion at the end of Q1 2018 from Dh5.2 billion in the same quarter of 2017 as last year's results included opportunistic investment gains of Dh400 million.

First Abu Dhabi Bank was created following the merger of National Bank of Abu Dhabi and First Gulf Bank.

The lender said its impairment charges totalled Dh439 million during January-March 2018 as against Dh641 million during the same period last year, a decrease of 31.5 per cent.

"As we enter our second year, FAB continues to make significant progress in delivering on its business objectives and integration milestones, with IT integration activities in particular moving forward at a steady pace and according to plan. As part of our business expansion strategy, we are also extending our presence into Saudi Arabia, after receiving commercial and investment banking licenses from the Saudi Arabian Monetary Authority and Capital Market Authority," said Abdulhamid Saeed, Group CEO, FAB.

"Looking ahead to the remainder of 2018, we remain steadfast in our commitment to support the growth ambitions of our shareholders, customers, employees and all other stakeholders," Saeed said.

Net interest income totalled Dh3.268 billion at the end of Q1 2018 as against Dh3.256 billion for the same period last year. Fees and commission grew 19 per cent to Dh934 million from Dh782 million. Listed on Abu Dhabi Securities Exchange, the bank's shares plunged 0.4 per cent to Dh12.45 on Sunday as against Dh12.50 on Thursday. - waheedabbas@khaleejtimes.com

Written by

Waheed Abbas

Waheed Abbas is Assistant Editor, covering real estate, aviation and other business stories that directly affect the lives of UAE consumers. He frequently reports human interest stories, too.