First Abu Dhabi Bank (FAB) (FAB.AD), opens new tab, the United Arab Emirates' biggest lender by assets, beat first-quarter profit estimates on Tuesday, boosted by strong growth in non-interest income from fees and commissions.
Shares in the lender were up by 2.4% around 0610 GMT in early trading, outperforming a 0.8% rise in Abu Dhabi's benchmark index (.FTFADGI), opens new tab.
The results come as FAB undergoes a restructuring aimed at strengthening its business in the Gulf and boosting shareholder return, according to sources.
Under the reorganisation, FAB is splitting its operations into four new divisions and appointed Citi dealmaking veteran Linos Lekkas as its new head of investment banking, sources told Reuters last month.
The restructuring at FAB, headed by Hana Al Rostamani since 2021, follows a series of senior management departures including its former head of global markets and chief operating officer earlier this year.
The company, whose top shareholder is the $330 billion Abu Dhabi wealth fund Mubadala, said on Tuesday that it had reorganised its operating segments during the January-March period.
Banks in the UAE have benefited from the Gulf region's growth prospects and rising demand for credit as regional governments invest in non-oil sectors including infrastructure and tourism to diversify their economies.
Net interest income climbed 3% to 5 billion dirhams ($1.36 billion) in the quarter ended March 31, while non-interest income jumped 22% to 3.8 billion dirhams.
Fees and commissions income rose 23% in the quarter versus a year earlier.
Net profit rose 23% to 5.13 billion dirhams, beating analysts' average expectations of 4.24 billion dirhams, according to data compiled by LSEG.
The bank's total assets rose 6% to 1.31 trillion dirhams.
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