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FAB reports Dh4.2 billion net profit, total assets over Dh1.2 trillion in Q1 2024

FAB reports Dh4.2 billion net profit, total assets over Dh1.2 trillion in Q1 2024
1 May 2024 11:21

ABU DHABI (WAM)

First Abu Dhabi Bank (FAB) has announced a solid net profit of Dh4.2 billion and revenue of Dh8.0 billion for the first quarter of 2024, underlining the bank's consistent growth trajectory.

The bank's stellar performance is evidenced by revenue that grew 18% year-on-year (YoY) to Dh8.0 billion, propelled by core operational growth, balance sheet expansion, higher Net Interest Margin (NIM), and robust non-funded income (NFI).

The double-digit growth largely offset the impact of the recently implemented UAE corporate tax. The contribution of non-interest income to Group revenue grew to 39%, and net profit increased by 6% YoY.

FAB solidified its position as the largest bank in the UAE as of March-end 2024, with total assets at Dh1.24 trillion (US$336 billion), loans at Dh508 billion and deposits at Dh803 billion, all historical highs.

The bank's Return on Tangible Equity (RoTE) of 17.4% is also well on track with 2024 and medium-term guidance of over 16%, underlining the bank's focus on delivering sustained shareholder value.

FAB continues to maintain strong liquidity and robust operational efficiencies, as highlighted in its 24% cost-to-income ratio.

Hana Al Rostamani, Group Chief Executive Officer of FAB, said, "FAB continues to deliver robust performance, reflected in double-digit growth in revenue year-on-year, supported by strong business momentum. This further strengthens our fundamentals, including our total asset base crossing the Dh1.2 trillion threshold. We remain focused on accelerating our growth strategy, building efficiencies and delivering sustained shareholder value.

"In 2024, we continue to demonstrate the same strengths that led to our exceptional performance in 2023, with growth in profits and revenues, backed by operational efficiencies and financial resilience. Our performance is anchored in the strength of the UAE economy, and increasingly backed by the dynamism of our international operations."

Lars Kramer, Group Chief Financial Officer of FAB, said, "The growth in non-funded income, in particular, is pleasing as we continue to leverage our region-leading capabilities, diversified business model and sophisticated Global Markets platform to further deepen client relationships. The strong revenue growth also enabled us to largely offset the impact of the UAE corporate tax and maintain robust provision coverage levels, particularly in the context of a global environment marked by continued uncertainties."

The start of the new financial year showed a strong performance of the bank's core businesses and client segments. Investment Banking revenue grew 26% YoY to Dh2.8 billion, and Corporate and Commercial Banking revenue increased 6% YoY to Dh1.8 billion.

Global Markets revenue grew 29% YoY to Dh1.9 billion, Consumer Banking revenue increased 37% YoY to Dh1.1 billion, and Global Private Banking revenue advanced 12% YoY to Dh308 million.

Revenue from local operations accelerated 14% YoY to Dh5.9 billion, and international operations increased 33% YoY to Dh2.0 billion.

 

Source: WAM
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