Newly-merged NBAD-FGB posts 12% rise in Q1 profit

Dubai - Pro-forma results boosted by 145.5% rise in 'other non-interest' income

National Bank of Abu Dhabi (NBAD) and First Gulf Bank (FGB), which merged on April 1 to create one of the largest banks in the Middle East and Africa, posted on Wednesday a 12.4 per cent rise in combined "pro-forma" first quarter net profit.
Pro-forma net profit reached Dh2.93 billion ($797.80 million) in the three months to March 31, they said in a statement, up from Dh2.60 billion in the year earlier period.
Analysts only provided forecasts for the two separate lenders - Dh1.31 billion for NBAD and Dh1.41 billion for FGB, according to the average estimates of three analysts polled by Reuters.
The combined bank plans to adopt its new name, First Abu Dhabi Bank, after shareholders approve the change at its general assembly meeting on April 24, it said.
The pro-forma results were boosted by a 145.5 per cent rise in "other non-interest" income to Dh1.20 billion from the year earlier period. That helped offset a 4.9 per cent slip in net interest and Islamic financing income to Dh3.21 billion as well as a 14.7 per cent slide in net fees and commissions to Dh799 million.
Operating expenses for the bank rose by 5.7 per cent to Dh1.53 billion , while impairment charges dipped 3.9 per cent to Dh645 million
Announced in June last year, the merger is expected to produce cost savings of Dh500 million.