First Abu Dhabi Bank (FAB.AD), opens new tab reported a 29% increase in second-quarter net profit driven by strong revenue growth, lifting its shares on Wednesday.
The UAE's largest lender by assets reported a net profit of 5.51 billion dirhams ($1.50 billion) in the quarter ended June 30, beating analysts' expectations of 4.35 billion dirhams, according to estimates compiled by LSEG.
The shares were up around 4%, lifting gains since the start of the year to over 30%.
UAE banks have benefited recently from rising credit demand as regional governments invest in sectors such as tourism and infrastructure to diversify their economies beyond oil.
FAB, whose top shareholder is $330 billion sovereign wealth fund Mubadala, said its net interest income came in at around five billion dirhams in the second quarter, up one percent from a year earlier, while non-interest income jumped more than 60% to 4.5 billion dirhams, boosted by fees and commissions.
"We achieved broad-based growth with all divisions delivering double-digit revenue expansion," CFO Lars Kramer said in a statement, noting that "prudent risk management" and investments in technology and AI also supported second-quarter profit.
Loans, advances and Islamic financing advanced 11% to 568 billion dirhams in the first half of 2025, while customer deposits were up six percent at 813 billion dirhams.
The bank said its results were boosted by its international franchise, which reported more than 20% growth in both loans and deposits, driven by markets including Saudi Arabia, the United Kingdom and France.
The bank's total assets climbed 14% to 1.34 trillion dirhams, as of end-June.
FAB, led by Group CEO Hana Al Rostamani since 2021, said in April it had reorganised its operating segments.
The restructuring is intended to strengthen FAB's business in the Gulf and boost shareholder returns, sources previously told Reuters, and comes after a series of senior management departures in recent years.
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