DUBAI: First Abu Dhabi Bank (FAB), the largest bank in the United Arab Emirates, posted a 1 percent fall in fourth-quarter net profit, citing costs linked to its recent merger.
FAB, the combination of National Bank of Abu Dhabi and First Gulf Bank, said net profit for the quarter was Dh2.82 billion, compared with Dh2.85 billion in the year earlier.
SICO Bahrain had estimated the bank would make a net profit of Dh2.65 billion, while EFG Hermes forecast Dh2.83 billion.
Excluding integration costs and other merger-related expenses, adjusted net profit for the quarter was Dh3.16 billion, up from Dh2.97 billion a year ago.
FAB’s board of directors recommended a cash dividend of Dh0.70 per share, which it said was the highest combined dividend distributed by the two banks, up 11 percent from 2016.
It said it had achieved around Dh500 million of cost synergies in the first year of integration, adding that it was evaluating its local activities and branch network.
“Regionally, we are working on expanding our presence to Saudi Arabia which forms part of FAB’s long-term strategy,” group chief executive Abdulhamid Saeed said.
Regional and international banks are eyeing opportunities to expand in Saudi Arabia, the largest economy in the Gulf, as the government pushes through reforms to cut the country’s dependence on oil revenue.
First Abu Dhabi Bank’s Q4 profit crimped by merger costs
First Abu Dhabi Bank’s Q4 profit crimped by merger costs
