Top Emirati bank’s profit dives over coronavirus

First Abu Dhabi Bank, the United Arab Emirates’ largest lender, on Monday reported a 22 percent slide in first quarter profits as it faced the impact of the coronavirus pandemic.

The bank posted a net profit of $654 million (2.4 billion dirhams) for January to March, compared to $845 million for the same period of 2019.

In a statement, it said the decline was due to lower revenues resulting from interest rate cuts and unprecedented market conditions, as well as provisions for risks from the coronavirus impact.

The bank set aside $201 million in impairment charges, calling it “prudent provisioning due to a challenging operating environment.”

“FAB delivered a resilient performance in the first quarter of 2020 in an unprecedented and challenging market environment,” CEO Andre Sayegh said.

The bank’s assets grew 14 percent year-on-year, to $227.5 billion.

Last week, Emirates NBD, Dubai’s largest bank and UAE second, reported a 24 percent slump in first quarter profits mainly due to coronavirus-driven provisions.