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FAB, UAE's largest lender, beats expectations on the strength of non-funded income

First Abu Dhabi Bank, the largest lender in the United Arab Emirates by assets, exceeded first-quarter profit expectations on Tuesday. This was boosted by a strong increase in non-interest revenue from fees and commissions.

Sources say that the results are part of a reorganization by FAB aimed at strengthening their business in Gulf and increasing shareholder returns.

Sources told us last month that FAB will split its operations into four divisions, and have appointed Citi dealmaking veteran LinosLekkas to be its new head for investment banking.

Hana Al-Rostamani, the new head of FAB since 2021, is following a number of departures of senior managers, including the former chief of global markets and its chief operating officer, both of whom left earlier this year.

The company stated that it reorganized all of its segments in the period between January and March.

In the quarter ending March 31, net interest income increased 3%, to 5 billion dirhams. Non-interest income rose 22%, to 3.8 billion.

The income from fees and commissions increased by 23% compared to a year ago.

LSEG data shows that the net profit rose by 23%, to 5.13 billion Dirhams. This was higher than analysts' expectations, which averaged 4.24 billion Dirhams.

The bank's assets totaled 1.31 trillion dirhams, an increase of 6%.

(source: Reuters)