UAE’s biggest lender FAB posts record profit, helped by economic rebound

UAE’s biggest lender FAB posts record profit, helped by economic rebound

DUBAI - First Abu Dhabi Bank, the biggest lender in the United Arab Emirates, posted a record net profit in 2021, fuelled by the country's economic recovery last year from the height of the pandemic.

The strong earnings were helped by a sharp jump in non-interest income, which rose 59% from a year earlier, driven by gains in investment banking and trading.

CEO Hana Al Rostamani said the investment banking business had "an exceptional year", originating and structuring a number of landmark transactions, and leading new offerings and new company listings on the Abu Dhabi bourse.

FAB reported a net profit of 12.53 billion dirhams ($3.41 billion) last year, up about 19% from 10.55 billion dirhams in 2020.

The UAE lender was expected to report an annual net profit of 12 billion dirhams, according to Refinitiv Eikon data.

FAB also reported a fourth-quarter net profit of 3.3 billion dirhams, up 3% from a year earlier, above analysts' estimates.

Loans grew 6% in 2021 from a year earlier, partly helping total assets to reach a record 1 trillion dirhams.

Smaller rival Emirates NBD posted a 34% rise in annual profit on Wednesday as an improving economy boosted investment banking income, while impairments fell.

FAB also said it will split