Breaking down FAB's full-year numbers for a post-merger picture - The National

Breaking down FAB's full-year numbers for a post-merger picture - The National:

"First Abu Dhabi Bank (FAB), the lender created last year from the coming together of National Bank of Abu Dhabi and First Gulf Bank, released its first set of post-merger annual results on Monday. In this week’s column, I’ll be looking at the bank’s pro-forma statements from both last year and 2016, analysing how well the new institution has been doing thus far. In 2017, FAB’s loans and advances – the bank’s largest asset component - decreased by about Dh4 billion compared with 2016; this is puzzling, as the usual logic of a merger is to grow your main business line, rather than see it shrink. To be fair, in percentage terms it’s a decrease of just 1 per cent. The bank’s cash pile increased 12 per cent to Dh138bn from Dh123bn over the period, representing about 21 per cent of the bank’s balance sheet. Since cash yields next to nothing, to have such a large repository is unexpected"



'via Blog this'