UAE’s largest lender, First Abu Dhabi Bank (FAB) reported strong Q3 results with operating income up 49% YoY to AED 6.41bn ($1.75bn) driven largely by a 125% YoY jump in non-interest income to AED 3.27bn ($890mn). Operating profits came in at AED 4.82bn ($1.31bn), up 56% YoY and net profits at AED 3.85bn ($1bn), up 54% YoY and the highest ever for Q3. Group CFO James Burdett said, “Our Investment Banking business was a major contributor to the Group’s earnings growth, on the back of an exceptional trading performance, and sustained activity across a number of areas including Debt Capital Markets, Trade Finance, Advisory, and Equity Capital Markets.” Impairment charges rose 58% YoY to AED 796mn ($217mn) for Q3 but were 16% YoY lower for 9M2021 to AED 1.94bn ($528mn). On the balance sheet front, total assets grew 7% YTD to AED 983bn ($268bn). NPL ratio was largely stable at 3.9% while liquidity coverage ratio worsened to 124% from 155% in Q3 2020. FAB’s CET1 ratio came in at 13%, 100bp lower vs. Q3 2020 and its capital adequacy ratio stood at 15.9%, 84bp lower vs. the same quarter last year.

FAB’s 4.5% Perps traded steady at 105.57 yielding 3.14%.

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