The UAE's largest bank, First Abu Dhabi Bank, announced Thursday it scooped record annual net profit of $3.4 billion in 2021, a 19 percent increase over the previous year.

The FAB Group, based in the United Arab Emirates capital, recorded profit of 12.5 billion dirhams, up from 10.6 billion dirhams in 2020, the bank said.

Total assets exceeded a "historic" high of one trillion dirhams ($272.4 billion), FAB said.

"This performance reflects positive underlying trends across core businesses in a year of economic rebound and expansion," it said, despite "headwinds from low interest rates".

Seagulls fly across the Gulf from Abu Dhabi's corniche in the Emirati capital
Seagulls fly across the Gulf from Abu Dhabi's corniche in the Emirati capital AFP / Karim SAHIB

On Wednesday, Dubai's largest bank, Emirates NBD, announced that its net profit jumped in 2021, as the economy of the Gulf city state also rebounded following a slump due to Covid.

The bank said its net profit rose 34 percent to $2.5 billion, from $1.9 billion in 2020.

It said higher retail volumes had offset the impact of low interest rates.

The UAE's central bank said in 2020 that it had doubled to $70 billion a stimulus package aimed at supporting the Emirati economy and domestic banks in the face of Covid-19.