Mixed Q3 Financial Results for Bank of America, First Abu Dhabi Bank, Al Ansari, and HDBank

Bank of America (BofA) reported a net income of $7.8 billion for the third quarter, representing a 10% increase compared to the same period last year. The bank's revenue also rose to $25.2 billion, slightly surpassing expectations [f83283d1].

The growth in profit was driven by several factors. Bank of America's consumer banking unit experienced a 6% increase in revenue, with spending on debit and credit cards rising by 3%. Additionally, the bank saw strong performance in its investment banking and trading divisions, with investment banking fees rising 2% and sales and trading revenue reaching its highest level in over a decade, up 8% [e2a31071].

Bank of America's average deposit balances rose to $1.9 trillion, while average loan and lease balances increased to $1 trillion. However, the bank also reported unrealized losses of $131.6 billion on securities held until maturity. Despite this, analysts do not expect the bank to be forced to sell the securities at a loss [f83283d1].

During the third quarter, Bank of America's stock price was influenced by bearish sentiment in the sector, leading to a drop in its stock value [f83283d1].

Looking ahead, Bank of America's CFO stated that the bank's headcount is expected to remain flat [e2a31071].

Shares of Bank of America were 1.7% higher in premarket trading [e2a31071].


First Abu Dhabi Bank (FAB), the largest lender in the UAE, reported a 46% increase in its third-quarter net profit, driven by growth in its core business and double-digit growth in interest and non-interest income. The bank's net profit for the three months ending September reached Dh4.3 billion ($1.17 billion), the highest quarterly profit on an underlying basis. Operating income for the same period rose to Dh7 billion, up 27% year on year. FAB's revenue at the end of September surged 38% to Dh20 billion, reflecting strong business volumes, improved margins, and broad-based growth across all businesses. The bank aims to mobilize $75 billion of sustainable finance projects by 2030 and has already funded over $18 billion in the first nine months of this year. Loans and advances and Islamic financing rose 3% to Dh478 billion, while customer deposits increased by 5% to Dh785 billion. FAB's strong financial performance is attributed to its international and diversified franchise, financial strength, and ample liquidity. [226b8629].


UAE money exchange and transfer company Al Ansari reported a 22% drop in net profit for the third quarter due to increased costs. Net profit for the three months ending in September was Dh124.5 million ($34 million), down from the previous year. The company's net gain on currency exchange fell 20% to Dh131.2 million, while finance costs more than doubled to Dh1.6 million. Despite economic and political uncertainties, Al Ansari remains confident in its core assets and value propositions. The company's nine-month net profit fell 10.5% to Dh387.8 million due to lower net gain on currency exchanges, higher expenses, and increased finance costs. Al Ansari's number of physical branches increased to 248 compared to the same period last year. The company plans to pay an interim dividend of Dh300 million, with a second payment to be disbursed in April 2024. [1b135af8].


The Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank) reported a pre-tax profit of over VNĐ8.16 trillion ($324.47 million) for the first half of the year, up 48.9% YoY. The bank achieved a credit growth rate of 13% and had a capital adequacy ratio of 13.9%. Its consolidated non-performing loan ratio was 1.59%, and revenues increased by 32.9% YoY. HDBank has paid a 10% dividend in cash and plans to pay 20% in stocks. The bank has total assets exceeding VNĐ624 trillion ($24.8 billion) and total deposits of VNĐ552 trillion ($21.93 billion). HDBank has focused on digitalization and achieved positive results, with a 2.5 times increase in customers using digital channels and a 130% YoY increase in e-banking transactions. The bank has also made advances in sustainable development, becoming the first bank in Vietnam to release a Sustainable Development Report based on international standards. HDBank has won awards for its business growth, digitalization, and sustainable finance. It has supported activities in education, training, healthcare, culture, and sports. HDBank aims to develop further based on its positive results and new initiatives [cfe12068].