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DUBAI, April 27 (Reuters) – First Abu Dhabi Bank PJSC (FAB) (FAB.AD)The UAE’s largest lender by assets reported a 23% drop in first-quarter net profit on Thursday, but said its loans and deposits rose on the back of a strong business and business environment.
The bank posted a profit of 3.93 billion dirhams ($1.06 billion), compared with 5.12 billion dirhams a year earlier, according to a filing to the exchange.
Excluding the gain on the sale of a stake in its payments business Magnati, which is booked in the first quarter of 2022, first-quarter profit rose 70% year-on-year, the lender said.
Total revenue for the first quarter was AED 6.7 billion, down 7% year-on-year, despite a 51% increase in operating income.
The bank took an impairment charge of Dh798 million in the first quarter, up 74 percent from Dh457.4 million last year.
FAB’s loans and advances grew by 9 percent, attracting deposits of AED80 billion, and total deposits rose by 30 percent.
The bank, majority-owned by the Abu Dhabi government, said total assets rose 21 percent to AED1.2 trillion, “mainly through strong deposit inflows in loans and high-quality liquid assets.”
The bank has repeatedly denied reports that it was considering a takeover bid for Britain’s Standard Chartered (Stan.L).
On Wednesday, StanChart’s chief financial officer said FAB had “not been touched at all” since acquisition speculation earlier this year.
($1 = 3.6718 UAE Dirhams)
Reporting by Rachna Uppal; Editing by Varun HK
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