FAB Q1 group net profit at Dhs2.5bn; initiates share transfer to acquire Bank Audi sae Egypt

FAB Q1 group net profit at Dhs2.5bn; initiates share transfer to acquire Bank Audi sae Egypt

First Abu Dhabi Bank (FAB), the UAE's largest bank, has reported group net profits of Dhs2.5 billion for the first quarter ended March 31, 2021, up 3 per cent compared to Dhs2.4bn in Q1 2020.

Revenue was 4 per cent lower year-on-year, as lower net interest income due to the rate cuts in 2020, was partially offset by higher other income.

The bank said in a statement that its net impairment charges were 36 per cent lower year-on-year reflecting improving economic conditions and adequate provision buffers, while operating expenses reduced 3 per cent as the group maintained cost discipline, while investing in digital and strategic initiatives.

FAB also said that it has launched “Magnati”, payments platform. It added that FAB Green Bonds now exceed $1bn.

Read: First Abu Dhabi Bank approves Dhs8.08bn cash dividends for 2020

FAB also announced that it has initiated the process of share transfer for 100 per cent of the share capital of Bank Audi sae (Egypt), Lebanon-based Bank Audi's subsidiary in Egypt.

Once the share transfer is complete, FAB will begin integrating the assets and operations of Bank Audi sae (Egypt) and FAB Egypt, with the integration process expected to be finalised in 2022.

Following share transfer completion, this acquisition will make