First Abu Dhabi Bank's Third-Quarter Profit Rises Despite Iran War Disruptions
By Farhan Rafid
DOHA, Qatar--First Abu Dhabi Bank reported higher third-quarter profit as growth in interest and non-interest income helped offset an increase in impairment charges, with the U.A.E.'s biggest bank continuing to expand lending amid economic disruptions from the Iran war.
The Abu Dhabi-based lender made a net profit of 5.74 billion dirhams ($1.56 billion) in the three months through September, up 6.5% from the same period last year.
The results come as the war involving Iran and the U.S., which began in late February, continues to disrupt shipping and trade across the Persian Gulf region, although Gulf authorities have taken measures to support businesses and maintain liquidity in the banking system.
The U.A.E.'s financial sector has held up despite weakness in the broader economy. Financial services grew 12.2% in the second quarter, compared with a 2.1% contraction in overall economic output, according to Emirates NBD Research. The economy expanded just 0.4% in the first half of the year as regional disruptions weighed on tourism, transport and trade.
For the first nine months of the year, the bank reported net profit attributable to shareholders of 16.46 billion dirhams, up 3% from a year earlier, while operating income increased 7% to 29.71 billion dirhams.
Net loans and advances rose 10% since the start of the year to 679 billion dirhams, while customer deposits increased 5% to 885 billion dirhams.
Moody's Ratings affirmed First Abu Dhabi Bank's Aa3 long-term deposit rating in June, citing strong capital, funding and liquidity buffers that could help it withstand uncertainty from the regional conflict. The agency also warned of potential asset-quality pressures arising from the bank's concentrated lending portfolio.
The bank's nonperforming loan ratio improved to 2.1% at the end of September from 2.6% a year earlier.
Write to Farhan Rafid at farhan.rafid@wsj.com
(END) Dow Jones Newswires
October 29, 2026 03:23 ET (07:23 GMT)
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