First Abu Dhabi Bank (FAB), the largest bank in the UAE, posted a 1% 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 2.82bn dirhams ($768mn), compared with 2.85bn dirhams in the year earlier.
SICO Bahrain had estimated the bank would make a net profit of 2.65bn dirhams, while EFG Hermes forecast 2.83bn dirhams.
Excluding integration costs and other merger-related expenses, adjusted net profit for the quarter was 3.16bn dirhams, up from 2.97bn dirhams a year ago.
FAB’s board of directors recommended a cash dividend of 0.70 dirhams per share, which it said was the highest combined dividend distributed by the two banks, up 11% from 2016.
It said it had achieved around 500mn dirhams 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.
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