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UPDATE 1-UAE's First Abu Dhabi Bank third-quarter profit falls
October 25, 2017 / 2:55 PM / in a month

UPDATE 1-UAE's First Abu Dhabi Bank third-quarter profit falls

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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 revenues weighed on its bottom line.

Excluding one-off gains from the sale of investment properties in the third quarter of 2016, net profit was down 4 percent.

FAB’s third-quarter net profit of 2.61 billion dirhams ($711 million), compared with 3.18 billion dirhams in the same period a year earlier, the bank said in a statement.

FAB was created last year by the merger of National Bank of Abu Dhabi and First Gulf Bank to create one of the largest banks in the Middle East and Africa. This is its second set of results since the merger.

EFG Hermes had forecast FAB would make a third-quarter profit of 2.85 billion dirhams.

FAB’s revenue or 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 and Jane Merriman

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