UAE’s First Gulf Bank Q1 net profit falls 6 per cent on lower fee income
First Gulf Bank on Wednesday posted a 6 percent fall in first-quarter net profit as income from fees and commission slipped.
The third largest bank by assets in Abu Dhabi made a net profit attributable to shareholders of 1.33 billion dirhams ($362.2 million) in the three months to March 31, compared to 1.42 billion dirhams in the same period a year ago, it said in a bourse statement.
Two analysts polled by Reuters had forecast a net profit for the quarter of 1.27 billion dirhams and 1.51 billion dirhams respectively.
Fees and commission income was down 10 percent between the first quarter of last year and the same period of this year at 365 million dirhams, while net interest and Islamic financing income was broadly flat over the same period at 1.59 billion dirhams.
Provisions for bad loans reached 376 million dirhams at the end of the first quarter, up 1 percent from the year-earlier period.
Loans and advances rose 7 percent year on year to stand at 152.5 billion dirhams as of March 31, FGB said. However, deposits over the same timeframe declined 2 percent to 140.8 billion dirhams.