Today's Edition
ABU DHABI (WAM)
First Abu Dhabi Bank (FAB) has delivered record financial results for the first half of 2024, with a net profit of Dh8.4 billion, and revenue of Dh15.7 billion, a growth of 16 percent year-on-year (YoY), underlining the bank’s consistent growth trajectory.
Profit before tax grew 15 percent YoY to Dh10.0 billion, while net profit for the second quarter of 2024 amounted to Dh4.3 billion, with operating income reaching Dh7.8 billion, a growth of 14 percent YoY.
FAB’s robust results were driven by double-digit growth across interest and non-interest income sources, helped by strong business momentum, expansion in Net Interest Margin (NIM), and an improved revenue mix, with Non-Funded Income (NFI) contributing 38 percent to Group revenue, up from 35 percent in H1 2023.
As of June-end 2024, FAB reinforced its position as the largest bank in the UAE with total assets at Dh1.2 trillion ($320 billion).
Loans, advances and Islamic financing grew six percent both year-to-date (YTD) and YoY to Dh513 billion, reflecting healthy demand and market share gains across key segments and geographies.
In the first half of 2024, FAB delivered a return on tangible equity (RoTE) of 17.3 percent, including 18.1 percent in Q2 2024, demonstrating the Group’s laser focus on shareholder value.
Balance sheet fundamentals remained strong through solid asset quality metrics, with a non-performing loans (NPL) ratio of 3.7 percent, and a strong liquidity profile displayed in a liquidity coverage ratio of 152 percent.
The Group’s cost-to-income ratio of 24.4 percent as of June-end 2024 demonstrated superior operating efficiency.
Group Chief Executive Officer of FAB, Hana Al Rostamani, said, “FAB is reaffirming its position as a leading force in the MENA banking sector, with the Group delivering another strong set of results in the second quarter and first half of 2024. Our outlook remains anchored in the strong fundamentals of the UAE and Abu Dhabi as a global economic powerhouse and preferred hub for investment, talent, and innovation. We remain on track to meet our 2024 and medium-term guidance, and to deliver sustainable shareholder returns.”
Group Chief Financial Officer of FAB, Lars Kramer, commented, "Building on a robust first quarter, we are very pleased with our progress in the first half of 2024. We continued to achieve high returns at scale while driving diversified growth across our franchise and investing strategically in order to create future efficiencies."
