The bank is in talks with Bank Audi to acquire the Lebanese bank's Egyptian unit/iStockby Kudakwashe Muzoriwa
UAE’s First Abu Dhabi Bank (FAB) has posted a four per cent increase in full-year net profit owing to higher operating income.
In a bourse filing, FAB stated that the bank recorded AED 12.5 billion full-year group net profit, a four per cent increase compared to AED 12.0 billion in 2018.
FAB, the biggest lender in the UAE, reported operating income of AED 20.2 billion, a four per cent year-on-year increase compared to the previous year, which the lender attributed to the solid underlying performance of its core businesses in a challenging environment.
Abdulhamid Saeed, FAB’s Group Chief Executive Officer, said, “These results were driven by the solid underlying performance of our core businesses despite challenging operating conditions, including a reversal of the interest rate cycle in the second half of the year.”
The bank’s loans and advances stood at AED 408 billion, a 16 per cent year-on-year increase compared to 2018. Similarly, FAB said that customer deposits increase by 12 per cent to AED 519 billion.
Just like its peers, Emirates NBD and Abu Dhabi Commercial Bank, FAB also reported a 17 per cent year-on-year increase in impairment charges, however, the impairment charges were offset by a 34 per cent rise in non-interest income.
Earlier this week, FAB confirmed that it has entered exclusive discussions with Bank Audi to acquire the Lebanese bank’s Egyptian unit.
FAB’s diversified business model positions the bank well to navigate an ever-evolving economic and regulatory landscape and transform challenges into opportunities.
“Internationally, we continue to implement our growth strategy in targeted markets, as we enter into exclusive discussions with Bank Audi to acquire its fully owned subsidiary in Egypt,” said Saeed.
FAB said that no valuations have been announced in its discussions with Bank Audi and there is no certainty that these talks will result in a transaction.