FAB reveals robust Q2 earnings, beating analysts' expectations
Date
7/25/2024 8:16:39 AM
(MENAFN) First Abu Dhabi bank (FAB), the largest lender in the UAE by assets, announced a stronger-than-expected performance for the second quarter of 2024 on Thursday. The bank's net profit attributable to shareholders reached 4.26 billion dirhams (approximately USD1.16 billion), marking a 1 percent increase from the 4.21 billion dirhams reported during the same period last year. This result exceeded the average analyst forecast of 3.98 billion dirhams, highlighting the bank's robust financial health.
The impressive earnings were bolstered by growth in both interest and non-interest income. Lars Kramer, the Group Chief Financial Officer, attributed this success to the maintenance of favorable lending rates throughout the year, which contributed to a continued improvement in margins for the fourth consecutive quarter. Kramer also noted that the results reflect effective balance sheet management and the strategic selection of activities to anticipate changes in interest rates.
UAE banks, including FAB, are benefiting from the region's economic growth prospects as Gulf governments invest in diversifying their economies away from oil dependency. Additionally, the higher US interest rates, which impact the region due to the currency peg to the dollar, have further supported the bank's performance. FAB reported an 11 percent increase in net interest income, reaching 9.8 billion dirhams in the first half of the year, while the net interest margin for the April-June period stood at 1.96 percent, continuing its upward trend.
MENAFN25072024000045015682ID1108481798
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.