First Abu Dhabi Bank's third-quarter profit rises 6% on net interest income growth

DUBAI: First Abu Dhabi Bank, the UAE’s biggest bank by assets, reported a 6% rise in third-quarter net profit on Thursday, driven by strong growth in net interest income.

Here are some details:

Net profit rose to 5.74 billion dirhams ($1.56 billion) for the three months ended September 30, up from 5.39 billion dirhams a year earlier, it said in a statement, and was largely unchanged from the previous quarter.

However, net profit rose 3% to 16.50 billion dirhams in the first nine months of the year, driven by an 11% rise in net interest income, the difference between earnings on loans and payouts on deposits.

Chief Financial Officer Lars Kramer said that margins had “remained resilient” and the bank’s loans to customers had grown, supported by “continued momentum” across franchises.

FAB said net loans and advances grew 10% in the first nine months of the year, while deposits increased by 5%, bringing total assets to 1.47 trillion dirhams at the end of the period.

The Middle East conflict brought turmoil to the region this year, and while business in the UAE has largely resumed, recovery in sectors such as hospitality and tourism could take longer.

The IMF expects the UAE economy to contract 3.9% in 2026 before rebounding in 2027.

The bank said net impairment charges had jumped 33% to 3.10 billion dirhams in the first nine months, citing a “prudent approach to risk management amid the evolving risk environment.”

Abu Dhabi sovereign fund Mubadala owns almost 40% of FAB, and the Abu Dhabi royal family owns nearly 20%, according to data compiled by LSEG.