UAE’s FAB profit jumps 46% on higher interest income

Wam

First Abu Dhabi Bank (FAB), the biggest lender by assets in the UAE, reported a 46 percent surge in third-quarter net profit on rising interest income.

Net profit stood at AED4.3 billion ($1.17 billion) in the third quarter, compared to AED2.9 billion a year ago.

Revenue rose 27 percent to AED7 billion on continued expansion in net interest income and growth from diversified revenue streams.

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The lender’s nine-month earnings reached AED12.4 billion, up 58 percent year on year. Revenue rose 38 percent annually to AED20.5 billion.

Non-interest income grew 46 percent year on year, contributing 35 percent to group revenue.

Loans, advances and Islamic financing grew three percent in the year to date to AED478 billion. Customer deposits grew five percent year on year to AED785 billion, while total assets stood at AED1.2 trillion.

Net impairment charges leaped 20 percent year on year to AED2.1 billion in the nine months of 2023. However, third-quarter annual provisions fell 13 percent to AED605 million due to higher recoveries.

The bank seeks to facilitate $75 billion of sustainable finance projects by 2030 and has already funded more than $18 billion in the first nine months of 2023.

The UAE will host Cop28 later this year, with the Emirate launching a finance initiative in September that will provide $4.5 billion to help unlock Africa’s clean energy potential.