Two Abu Dhabi Lenders Post Sharp Profit Growth

10/30/2013 12:00 pm EST

Focus: GLOBAL

The two biggest banks of Abu Dhabi, also the biggest lenders, recently posted considerable quarterly profit growth numbers, mainly as a result of an increase in business and individual loans, writes Mahmoud Kassem, of The National.

Abu Dhabi's two biggest banks reported sharp profit rises Monday, October, 28.

First Gulf Bank's (UH:FGB) third-quarter earnings grew 13% from the same period last year, while Abu Dhabi Islamic Bank's (ABU:ADIB) quarterly income climbed 20%.

Their performances were bolstered by the economic upswing, as more companies and individuals took out loans for business expansion and property purchases.

Third-quarter net income at FGB was Dh1.19 billion, and Dh395.5 million for ADIB.

Shares of FGB, which have rallied 42% this year, closed 0.9% lower to Dh16.45 a share.

ADIB's shares rose 0.2% to Dh4.81, bringing its gain this year to 51%.

The bank's chief executive, Tirad Al Mahmoud, said: “On the back of three quarters of sustained asset and profitability growth, our outlook for the full year is positive and we remain committed to our growth strategy.”

Over at FGB, Abdulhamid Saeed, its managing director, said while the lender would always focus on the UAE, it was also reinforcing its global presence, especially in Asia.

Read more from The National here…

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