First Abu Dhabi Bank profit 4% lower in the second quarter

DUBAI: First Abu Dhabi Bank, the UAE’s biggest bank by assets, on Wednesday reported a lower second-quarter net income on what it said was a slower business momentum.
On a pro-forma basis, net profit was recorded at Dh2.56 billion (SR2.61 billion), 4 percent lower from Dh2.68 billion during the same period last year. This is the first combined results of Abu Dhabi’s two biggest banks, First Gulf Bank and National Bank of Abu Dhabi, after they merged in April.
An analyst at the Egyptian investment bank EFG-Hermes had projected a profit of Dh2.57 billion for the combined bank.
Net interest income dropped fell percent in the three months ended June to Dh3.17 billion versus Dh3.35 billion during the same period last year.
First-half net profit meanwhile improved 4 percent year-on-year to Dh5.49 billion from Dh5.28 billion in 2016.
“FAB’s performance in the first half of 2017 demonstrates the Group’s resilience during a period marked by softer economic conditions,” said Abdulhamid Saeed, the bank’s chief executive.
“We ended the period with a strong balance sheet, an industry leading cost-to-income ratio, as well as a robust liquidity profile and capital position — meaning we are well-placed to meet the evolving regulatory landscape.”
Saeed likewise reported progress in the integration of the two bank’s IT systems as well as the completion of the organizational structure across the group.
“I am pleased with the progress and execution of our integration plan at this early stage in our transformation journey,” Saeed said.
“The consolidation of our businesses and operations, and the ongoing realization of synergies are strong testaments to the benefits of this merger as we continue to create value for customers, employees, shareholders and communities, and empower them to grow stronger through differentiation, agility and innovation.”