Latest news with #LinosLekkas
Arabian Post
4 days ago
- Business
- Arabian Post
FAB Share Sale Draws Strong Demand Amid Strategic Expansion
Arabian Post Staff -Dubai First Abu Dhabi Bank , the largest lender in the United Arab Emirates by assets, is set to raise approximately $480 million through a secondary share offering. The transaction involves the sale of around 113 million shares at a fixed price of 15.5 dirhams per share, representing a 3.7% discount to the bank's closing price of 16.1 dirhams on the Abu Dhabi Securities Exchange. Citi, acting as the bookrunner, confirmed that the offering was fully subscribed, with demand surpassing the number of shares available. The identity of the selling shareholder remains undisclosed. FAB's largest stakeholder is Mubadala Investment Company, Abu Dhabi's sovereign wealth fund, which manages assets exceeding $330 billion. As of the end of March, FAB reported total assets of 1.31 trillion dirhams, underscoring its dominant position in the region's banking sector. ADVERTISEMENT The oversubscription of the share sale indicates robust investor confidence in FAB's financial health and strategic direction. The bank has been actively pursuing growth opportunities beyond the Gulf region. Two years ago, FAB explored a potential acquisition of London-listed Standard Chartered, signaling its ambition to expand its international footprint. Under the leadership of Group CEO Hana Al Rostamani since 2021, FAB has undergone significant restructuring to enhance operational efficiency and shareholder returns. The bank reorganized its operations into four new divisions and appointed Linos Lekkas, a veteran from Citi, as the head of its investment banking division. This strategic realignment aims to strengthen FAB's position in the Gulf and support its expansion plans. FAB's strong financial performance further bolsters investor sentiment. In the first quarter, the bank reported a 23% increase in net profit, driven by growth in non-interest income from fees and commissions. This performance exceeded analysts' expectations and reflects the bank's diversified revenue streams and effective cost management.
Arabian Post
06-05-2025
- Business
- Arabian Post
Dubai's Stock Market Outpaces GCC Peers Amid Sectoral Strength
Dubai's equity market emerged as the top performer among Gulf Cooperation Council bourses in April 2025, registering a 4.1% gain driven by robust activity in the real estate and banking sectors. This contrasts with the broader S&P GCC Composite Index, which declined by 1% during the same period, reflecting mixed performances across the region amid fluctuating oil prices and global trade uncertainties. The banking sector played a pivotal role in Dubai's market ascent. Dubai Islamic Bank , the largest Sharia-compliant lender in the UAE, reported an 8% year-on-year increase in net profit for the first quarter of 2025. This growth was underpinned by a 7% rise in net financing and sukuk investments, reaching AED 212 billion. DIB's asset quality improved significantly, with impairment charges dropping by 71% to AED 407 million and the non-performing financing ratio decreasing to 4%. The bank's shares responded positively, posting a 5.4% gain in April. In the real estate sector, Emaar Properties experienced a 1.5% decline in its stock price, contributing to a 0.4% dip in Dubai's main index on April 30. Despite this, the overall monthly performance remained strong, bolstered by gains in other financial institutions. Emirates NBD, for instance, saw its shares rise by 1.2%, reflecting investor confidence in the banking sector's resilience. Abu Dhabi's stock market also recorded positive movement, with its index climbing 1.8% in April. First Abu Dhabi Bank , the UAE's largest lender by assets, exceeded first-quarter profit expectations, reporting a 23% year-on-year increase in net profit to AED 5.13 billion. This performance was driven by a substantial rise in non-interest income, which grew by 22% to AED 3.8 billion. FAB's strategic restructuring, including the appointment of Linos Lekkas as head of investment banking and a reorganisation into four operational divisions, has been positively received by investors, with the bank's shares gaining 8.7% over the month. See also Dubai Residential Reit IPO Marks Key Moment for Property Market Qatar's equity markets posted a 2.2% growth in April, supported by a 1.4% increase in Qatar Islamic Bank shares. However, the broader market sentiment was tempered by declines in other sectors, such as a drop in Qatar Gas Transport's stock ahead of its earnings report. In contrast, Saudi Arabia's main index experienced a slight decline of 0.1% on April 30, influenced by falling oil prices and weaker corporate earnings. Saudi Aramco's shares fell by 0.6%, while Americana Restaurants International saw a 2.2% decrease following a drop in quarterly profits. Alinma Bank's stock also declined by 1.2% due to a sequential drop in quarterly profits.
Gulf Business
29-04-2025
- Business
- Gulf Business
UAE's FAB profit beats estimates on strong growth in non-funded income
Image credit: fabconnects/Instagram First Abu Dhabi Bank (FAB), the United Arab Emirates' biggest lender by assets, beat first-quarter profit estimates on Tuesday, boosted by strong growth in non-interest income from fees and commissions. The results come as FAB undergoes a restructuring aimed at strengthening its business in the Gulf and boosting shareholder return, according to sources. Read- Under the reorganisation, FAB is splitting its operations into four new divisions and appointed Citi dealmaking veteran Linos Lekkas as its new head of investment banking, sources told Reuters last month. The restructuring at FAB, headed by Hana Al Rostamani since 2021, follows a series of senior management departures including its former head of global markets and chief operating officer earlier this year. The company said that it had reorganized its operating segments during the January-March period. Net interest income climbed 3 per cent to Dhs5bn ($1.36bn) in the quarter ended March 31, while non-interest income jumped 22 per cent to Dhs3.8bn. Fees and commissions income rose 23 per cent in the quarter versus a year earlier. Net profit rose 23 per cent to Dhs5.13bn, beating analysts' average expectations of Dhs4.24bn, according to data compiled by LSEG. The bank's total assets rose 6 per cent to Dhs1.31tn.
Reuters
29-04-2025
- Business
- Reuters
UAE's top lender FAB profit beats estimates on strong growth in non-funded income
Companies DUBAI, April 29 (Reuters) - First Abu Dhabi Bank (FAB) ( opens new tab, the United Arab Emirates' biggest lender by assets, beat first-quarter profit estimates on Tuesday, boosted by strong growth in non-interest income from fees and commissions. The results come as FAB undergoes a restructuring aimed at strengthening its business in the Gulf and boosting shareholder return, according to sources. The Reuters Tariff Watch newsletter is your daily guide to the latest global trade and tariff news. Sign up here. Under the reorganization, FAB is splitting its operations into four new divisions and appointed Citi dealmaking veteran Linos Lekkas as its new head of investment banking, sources told Reuters last month. The restructuring at FAB, headed by Hana Al Rostamani since 2021, follows a series of senior management departures including its former head of global markets and chief operating officer earlier this year. The company said that it had reorganized its operating segments during the January-March period. Net interest income climbed 3% to 5 billion dirhams ($1.36 billion) in the quarter ended March 31, while non-interest income jumped 22% to 3.8 billion dirhams. Fees and commissions income rose 23% in the quarter versus a year earlier. Net profit rose 23% to 5.13 billion dirhams, beating analysts' average expectations of 4.24 billion dirhams, according to data compiled by LSEG. The bank's total assets rose 6% to 1.31 trillion dirhams. ($1 = 3.6726 UAE dirham)
Reuters
05-03-2025
- Business
- Reuters
UAE's FAB prepares overhaul, picks Citi veteran as new investment banking head, sources say
DUBAI, March 5 (Reuters) - First Abu Dhabi Bank (FAB) ( opens new tab is planning to split its operations into four new divisions in a bid to strengthen its business in the Gulf and boost shareholder returns, two sources familiar with the matter said. As part of the reorganisation, FAB is set to hire Citi dealmaking veteran Linos Lekkas as its new head of investment banking, the sources said. The restructuring at the United Arab Emirates' biggest bank by assets is the latest move by CEO Hana Al Rostamani as she tries to foster faster growth at the lender and follows a number of senior management departures in recent years. FAB declined to comment, while Lekkas was not immediately available for comment. The four new divisions, formed from a current five, will be: investment banking and markets; wholesale banking; international banking; and personal, wealth and business banking. Martin Tricaud, the current investment banking head, will move to lead wholesale banking, the sources said, speaking on the condition of anonymity because they are not authorised to speak with media. Bloomberg first reported the bank's reorganisation plans, citing a memo to staff. FAB, headed by Al Rostamani since 2021, has seen a series of senior management departures. In January, Reuters reported that its head of global markets, Sameh Al Qubaisi, and its chief operating officer, Suhail Bin Tarraf, were set to leave the lender. The bank's head of mergers and acquisitions and corporate development, Eric Shehadeh, who was hired in mid-2023, left after less than a year in the job. FAB has been seeking to expand including outside of the Gulf. Two years ago it said it had considered a bid for London-listed Standard Chartered (STAN.L), opens new tab.
