UAE's biggest lender FAB posts 19% jump in Q2 net profit

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28/07/2021 06:16

DUBAI, July 28 (Reuters) - First Abu Dhabi Bank  FAB.AD ,
the United Arab Emirates' biggest lender, posted on Wednesday a
19% rise in quarterly net profit, underpinned by sharp gains in
its investments and derivatives and on higher fee income.
    FAB posted a net profit of 2.8 billion dirhams ($783.87
million) in the quarter ended June 30, up from 2.4 billion a
year earlier.
    Arqaam Capital had forecast a net profit of 2.4 billion
dirhams, while EFG Hermes had projected 2.5 billion dirhams.
    The lender's operating income was boosted by a sharp jump in
derivatives and investments of 1.4 billion dirhams in the second
quarter, a surge from 200 million dirhams a year earlier.
    Net fee and commission income rose by more than a fifth to
768.8 billion dirhams. 
    Net interest income fell in a weak interest rate environment
worldwide while impairment charges dropped amid signs of
recovery from the COVID-19 pandemic fallout. 
    
     ($1 = 3.6728 UAE dirham)

 (Reporting by Saeed Azhar, Editing by Sherry Jacob-Phillips)
 ((Saeed.Azhar@thomsonreuters.com; +971 44536787; Reuters
Messaging: saeed.azhar.reuters.com@reuters.net))