Both Abu Dhabi controlled lenders are in the process of merging together
First Gulf Bank (FGB), the third largest lender in Abu Dhabi by assets has reported 11 per cent year-on-year decline in fourth-quarter 2016 net income to AED1.53bn ($417m).
The three-month to 31 December profit slumped due to a 1 per cent drop in net interest and Islamic financing income to AED1.64bn, while other operating income dipped by 63 per cent to AED250m, the lender said in a statement to Abu Dhabi Securities Exchange (ADX) where its shares are traded.
The government controlled FGB, is in the process of merging with the National Bank of Abu Dhabi (NBAD), the biggest bank in the emirate by assets, to create the largest financial entity in the Middle East and North African region.
FGB despite being smaller in asset size, was named acquirer in the government-merger, however, its performance in the last three months is in stark contrast to its acquisition target.
NBAD has reported 28 per increase in its fourth-quarter 2016 net profit to AED1.32bn, up from AED1.04bn as the amount allocated to cover non-performing loans decreased by 28.7 per cent to AED311m in the last three months of the year.
NBADs full-year profit however, saw a modest 1 per cent increase as provisions for bad debts over the entire 2016 rose to AED1.19bn, a 26.3 per cent spike from AED934m reported at the end of 2015.
FGBs performance for the 12-month was flat advancing just 0.3 per cent to AED6.01bn. The lenders board has proposed a cash dividend of AED1 per share for 2016, unchanged from a year earlier, while NBAD proposed a cash dividend of AED0.45 per share, same payout for 2015.
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