UAE’s biggest lender FAB posts record quarterly profit of $1.4 bln

First Abu Dhabi Bank (FAB) FAB.AD, the United Arab Emirates’ biggest lender, reported on Thursday its highest ever quarterly net profit, helped by the sale of a majority stake in its payments business, Reuters reported.

The Abu Dhabi-headquartered bank made 5.1 billion dirhams ($1.4 billion) in the January-March period, up 107% compared to the 2.5 billion dirhams logged in the period a year ago.

Arqaam Capital had forecast a net profit of 3.05 billion dirhams for the quarter, while EFG Hermes had put it at 3.1 billion dirhams.

Total quarterly income stood at 7.3 billion dirhams, which includes the 2.8 billion net gain from the Magnati stake sale, up from 4.4 billion dirhams, according to a stock market filing.

Group Chief Financial Officer James Burdett said growth had picked up across all business segments during the quarter and that group loans had expanded by 6% year-to-date.

The UAE banking sector is improving on the back of a further easing in COVID-19-related restrictions and a rebound in oil prices, boosting economic activity.

Rating agency Moody’s has projected that UAE’s real GDP will grow by 6.3% in 2022 and 4% in 2023, with the non-hydrocarbon economy growing by 4.4% and the hydrocarbon sector by 11.4% as oil production returns to pre-pandemic levels.