UAE's top bank FAB beats profit estimates on higher interest income | Reuters
First Abu Dhabi Bank (FAB), the United Arab Emirates' biggest lender by assets, on Thursday beat estimates with a 46% jump in third-quarter net profit, boosted by higher interest income.
Net profit was 4.3 billion dirhams ($1.17 billion) in the three months to Sept. 30, up from 2.9 billion a year earlier.
That topped the roughly 3.7 billion dirhams expected by analysts, LSEG data showed.
Its net interest income - the difference between earnings on loans and payouts on deposits - jumped 26% to about 4.6 billion dirhams.
Gulf banks are reaping windfalls after the U.S. Federal Reserve raised borrowing costs to try to control stubborn inflation as their currencies are pegged to the dollar.
But the Fed's aggressive monetary policy has made it difficult for customers to borrow and repay debt, prompting lenders to provision more for potential defaults.
FAB's shares rose 1.8% in early trade to 13.5 dirhams a piece on Thursday after the earnings were released. But they are down 21% year-to-date, underperforming the broader Abu Dhabi equities market (.FTFADGI) which is down 6.9%.
No comments:
Post a Comment