ABU DHABI, Oct 25 (Reuters) - First Abu Dhabi Bank, the largest bank in the United Arab Emirates, on Wednesday reported an 18 percent drop in third quarter profit as lower operating income weighed on its bottom line.
FAB made a net profit of 2.61 billion dirhams ($711 million) in the third quarter of 2017, compared to 3.18 billion dirhams in the period a year earlier, the bank said in a statement.
This is the second combined financials of Abu Dhabi’s two biggest banks after their merger in April to create one of the largest banks in the Middle East and Africa.
EFG Hermes had forecast FAB would make a quarterly profit of 2.85 billion dirhams.
FAB’s operating income, comprising interest, non-interest and other income, was 4.61 billion dirhams in the third quarter, down 16 percent compared to the same period last year.
FAB, with total assets of 644 billion dirhams, said loans and advances stood at 328.3 billion dirhams at the end of September, down 2 percent from the end of December 2016.
Customer deposits totalled 378.9 billion dirhams, almost flat compared to the end of December 2016.
The bank said operating expenses dropped 9 percent in the quarter from the year earlier period to 1.34 billion dirhams, while impairment charges fell 21 percent to 562 million dirhams.
Reporting by Stanley Carvalho; Editing by Edmund Blair