Tuesday, 28 July 2020

UPDATE 1-First #AbuDhabi Bank profit drops 25% as impairments jump - Reuters

UPDATE 1-First Abu Dhabi Bank profit drops 25% as impairments jump - Reuters:

First Abu Dhabi Bank (FAB), the United Arab Emirates’ biggest lender, reported a 25% fall in quarterly profit on Tuesday, dragged down by another quarter of higher impairment charges.

Banks in the region have been hit by the twin shock of the coronavirus pandemic and lower oil price, with most seeing their profits plunge in the second quarter as they book higher provisions for expected credit losses.


FAB’s second-quarter net profit was 2.41 billion dirhams ($656 million) versus 3.22 billion dirhams a year earlier. It was flat compared with the first quarter.

Net impairment charges jumped 127% in the quarter to 1.06 billion dirhams from 467 million dirhams a year ago. In the first quarter, net impairment charges were 738 million dirhams, 81% higher year-on-year.

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