UAE's biggest lender FAB posts record profit on economic rebound (updated)

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27/01/2022 06:08

(Adds quotes, details from earnings)
    By Saeed Azhar
    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.
    The strong earnings were helped by a sharp jump in
non-interest income, which rose 59% from a year earlier, driven
by gains in investment banking and trading.
    CEO Hana Al Rostamani said the investment banking business
had "an exceptional year", originating and structuring a number
of landmark transactions, and leading new offerings and new
company listings on the Abu Dhabi bourse.
    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.
    The UAE lender was expected to report an annual net profit
of 12 billion dirhams, according to Refinitiv Eikon data.
    FAB also reported a fourth-quarter net profit of 3.3 billion
dirhams, up 3% from a year earlier, above analysts' estimates.
    Loans grew 6% in 2021 from a year earlier, partly helping
total assets to reach a record 1 trillion 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.  urn:newsml:reuters.com:*:nL1N2U608H
    FAB also said it will 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.
    The dividend will be split into 0.49 dirhams a share in cash
and 0.21 dirhams as scrip dividend. New shares will be issued at
17.97 a share, it said.
    FAB last year acquired the Egyptian unit of Bank Audi, which
helped revenue from its international operations grow 26%
year-on-year, driven by Middle East and North Africa.
    Shares of FAB were up 9% year-to-date, reflecting investor
expectations of an economic recovery and hope that rising
interest rates will boost earnings.
    
 ($1 = 3.6726 UAE dirham)

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