UAE's biggest lender FAB posts record profit, helped by economic rebound

Gulf Island Fabrication

27/01/2022 05:07

DUBAI, Jan 27 (Reuters) - First Abu Dhabi Bank  FAB.AD , the
biggest lender in the United Arab Emirates, posted a record net
profit in 2021, fuelled by the country's economic recovery last
year from the height of the pandemic.
    "This performance reflects positive underlying trends across
core businesses in a year of economic rebound and expansion," it
said in a statement.
    The bank also split its dividend of 0.70 dirhams into cash
and shares for the first time, giving shareholders flexibility
to own more shares in the lender.
    FAB reported a net profit of 12.53 billion dirhams ($3.41
billion) last year, up about 19% from 10.55 billion dirhams in
2020, it said in a statement.
    The UAE lender was expected to report an annual net profit
of 12 billion dirhams, according to a mean forecast of 10
analysts on Refinitiv's Eikon data.
    FAB also reported a fourth-quarter net profit of 3.3 billion
dirhams, up 3% from a year earlier, above analysts' estimates. 
    EGF Hermes had projected a quarterly net profit of 2.98
billion dirhams and Arqaam Capital estimated 2.87 billion
dirhams.
    Smaller rival Emirates NBD  ENBD.DU  posted a 34% rise in
annual profit on Wednesday as an improving economy boosted
investment banking income, while impairments fell sharply from
the height of the pandemic.  urn:newsml:reuters.com:*:nL1N2U608H


($1 = 3.6726 UAE dirham)

 (Reporting by Saeed Azhar; Editing by Shailesh Kuber)
 ((Saeed.Azhar@thomsonreuters.com; +971 44536787; Reuters
Messaging: saeed.azhar.reuters.com@reuters.net))