DUBAI, Oct 19 (Reuters) - First Abu Dhabi Bank (FAB), the United Arab Emirates' biggest lender by assets, on Thursday reported a 46% jump in third-quarter net profit, beating analysts' expectations, on higher income from interest payments as customers paid more to borrow.
Net profit was 4.3 billion dirhams ($1.17 billion) in the three months to Sept. 30, up from 2.9 billion dirhams a year earlier.
Analysts, on average, were expecting a profit of about 3.7 billion dirhams, according to LSEG data.
FAB's net interest income - or the difference between what a bank earns on loans and pays out on deposits - jumped 26% to about 4.6 billion dirhams in the quarter.
Gulf banks are reaping windfalls from charging clients higher interest rates as the U.S. Federal Reserve raised borrowing costs to rein in stubborn inflation. With currencies pegged to the dollar, many Gulf states track U.S. rate moves.
Customer deposits rose 5% to 785 billion dirhams while loans were up 3% on a yearly basis but down 1% quarter-on-quarter to 478 billion dirhams. The bank said the decline was a result of drawdowns offset by a few large repayments.
($1 = 3.6726 UAE dirham) (Reporting by Hadeel Al Sayegh Editing by Eileen Soreng and Mark Potter)
