fab: Due to increased non-interest income, UAE First Abu Dhabi Bank’s third-quarter profit soared 54%

First Abu Dhabi Bank (Fab), The largest lender United Arab EmiratesNet profit for the third quarter announced on Thursday increased by 54%, thanks to the increase in non-interest income as the economy gradually recovers from the coronavirus pandemic.

After the economy was hit by the 2020 pandemic, the earnings of UAE banks rebounded, and FAB’s investment banking business benefited from the increase in Abu Dhabi’s transaction volume.

The bank stated: “Driven by the launch of the COVID-19 vaccine, the improvement of corporate and consumer confidence, and the impact of global monetary and fiscal support measures, global markets and macro sentiment have generally maintained a positive momentum in the third quarter of 2021. ”

In the quarter ended September 30, FAB achieved a net profit of 3.9 billion dirhams (US$1 billion), which was higher than the 2.5 billion dirhams in the same period last year.According to analysts’ average forecast, the lender is expected to achieve a net profit of Dh2.6 billion Eikon Refinitiv data.

Driven by strong investment banking and transaction performance, non-interest income more than doubled to 3.3 billion dirhams.

However, despite the decline during the nine-month period, net impairment charges in the third quarter increased by 58% from the same period last year.

Smaller competitors and DubaiDue to the economic recovery and the surge in retail financing demand, and the decline in impairment charges, its largest bank Emirates NBD announced a 61% profit growth in the third quarter, exceeding expectations.