UAE's FGB posts 6% drop in Q1 net profit

First Gulf Bank (FGB), Abu Dhabi's third largest bank by assets, reported a 6 percent year-on-year (YoY) drop in Q1-2016 net profit to AED 1.33 billion mainly due to lower fees and commission income, as well as market conditions.

The Abu Dhabi-listed lender recorded AED 376 million worth of provisions for bad loans by the end of the quarter, up 1 percent from Q1-2015.

However, FGB managed to maintain net profit above 60 percent of revenue and a provision coverage ratio of 109.8 percent.

In addition, the bank's loans and advances increased 7 percent to AED 152.5 billion. Assets reached AED 227.4 billion during the same period, while client deposits fell 2 percent YoY to AED 140.8 billion.

FGB's shares closed today at AED 13.0.