FAB first-quarter profit hits record on sale of Magnati stake
First Abu Dhabi Bank, the UAE’s largest lender by assets, more than doubled its first-quarter net profit to a record, thanks to the sale of its majority stake in its payments business and the improved performance of the bank’s core business.
Net profit attributable to shareholders for the three months to the end of March jumped to 5.1 billion dirhams ($1.4 billion), the lender said Thursday in a statement to the Abu Dhabi Stock Exchange, where its shares are traded.
Quarterly revenue includes a net gain of 2.8 billion dirhams from the sale of a majority stake in the Magnati payments business to New York-listed Brookfield Business Partners. The sale announced in February valued Magnati at around $1.15 billion.
Core underlying operating performance also boosted the bank’s profitability, which was driven by higher net interest income, a recovery in fees and commissions and a greater contribution from Bank Audi Egypt to group revenues. which helped offset lower trading and investment income during the reporting period. .
The sale of Magnati’s stake crystallizes “significant value for our payments business and paves the way for accelerated growth with a long-term strategic partner as we remain at the forefront of payments and the digital agenda. of the region”, Hana Al Rostamani, general manager of the FAB group, mentioned.
“Our core businesses have performed well during a period of sustained and dynamic economic activity in the UAE, capitalizing on a healthy pipeline and growing business and consumer confidence.”
Updated: April 28, 2022, 05:51