The UAE’s largest bank, FAB, reported a 5% increase in its third-quarter profit, reaching $1.2 billion, thanks to strong growth in interest income
First Abu Dhabi Bank (FAB), the biggest bank in the UAE by market value and assets, reported a 5% increase in its third-quarter net profit compared to last year, earning $1.2 billion (AED 4.5 billion). This growth was driven by higher interest income and more business activity.
Third-Quarter Performance
- The bank’s net interest income increased by 7% to $1.3 billion (AED 4.9 billion) for July-September 2024, compared to $1.3 billion (AED 6 billion) during the same period last year, according to its earnings report on Friday.
- The bank’s total operating income for the quarter grew by 18% year-on-year to $2.2 billion (AED 8.2 billion), thanks to strong growth in both interest and non-interest income across all business areas.
- However, operating expenses also went up by 9% to $537.7 million (around AED 2 billion) compared to the same period last year.
- The bank’s impairment charges (money set aside for potential loan losses) rose sharply by 50% to $247.5 million (AED 909 million), compared to $164.7 million (AED 605 million) a year earlier.
Key Quote
“Our focus on improving customer relationships in wholesale banking, personal banking, and wealth management has boosted the Group’s performance in the first nine months of the year, leading to strong double-digit growth both locally and internationally,” said Group CEO Hana Al Rostamani.
“Our network gives us an edge over competitors and helps us achieve our goal of expanding and diversifying our revenue.”
Big Number
By the end of September 2024, the bank’s total assets increased by 4% compared to last year, reaching $334.9 billion (AED 1.2 trillion). This growth mainly came from more lending and a bigger investment portfolio.
Published: 18th October 2024
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