FAB’s quarterly profit up 61% on higher rates

FAB’s quarterly profit up 61% on higher rates

UAE’s First Abu Dhabi Bank, also known as FAB, said its second-quarter net profit jumped by 61 per cent year-on-year (YoY), driven by higher interest and non-interest income and improved margins. FAB’s net profit in Q2 2023 was $1.1bn (Dhs4.2bn) while its first-half profit reached Dhs8.1bn, the highest ever achieved by the banking group in a half-year period. The bank’s net interest income rose by 32 per cent YoY to reach Dhs4.5bn in the quarter, while its non-interest income surged by 34 per cent to Dhs2.3bn. The banking group’s operating income reached Dhs6.8bn in Q2 2023, a 37 per cent YoY increase compared to Dhs5bn in the second quarter of 2022, by sustained momentum across all business lines, continued strength in feebased businesses, and higher market-related income. “The results demonstrate that the group continues to manage risks, control costs and maintain a robust foundation underpinned by strong organic capital generation,” said in a bourse filing. The bank’s common equity Tier 1 (CET1) strengthened to 13.6 per cent in the three months ended June 30 compared to 12.6 per cent in the same period a year earlier. The bank highlighted that positive growth momentum was sustained across all business lines during