Abu Dhabi’s FAB to triple revenue from China operations by 2026

The UAE’s largest lender First Abu Dhabi Bank (FAB) plans to triple revenue from its China operations to Dhs300m by 2026, mirroring the country’s deepening relationship with the Asian economic giant.

FAB opened its fully licenced branch in mainland China in 2022 and grew its business there by 50 per cent in 2023.

“China continues to be a priority for First Abu Dhabi Bank, and we are committed to expanding our business there while fostering Chinese engagement in the GCC and Egypt,” FAB group CEO Hana Al Rostamani said in a statement.

Al Rostamani said the bank seeks to facilitate a more vital trade and investment corridor between the two regions to drive transformative growth and development for both markets.

As we chart the course through 2024, FAB looks forward to deepening its relationship with China, the foremost global trade partner of the UAE. The Group also received an endorsement from Ambassador H.E. Zhang Yiming, reflecting its commitment to facilitating growth for Chinese… pic.twitter.com/IqQgQJKFlq

— FAB Connects (@FABConnects) March 1, 2024

The banking group has grown from strength to strength in China from being the first foreign bank to obtain a Chinese currency (RMB) licence to becoming an official strategic partner for leading state corporates seeking trade finance, corporate finance and access to global markets.

China is the UAE’s top global trade partner, with bilateral trade expected to reach $200bn annually by 2030. It is also the third-largest foreign investor in the UAE and the GCC region’s top-ranking nation in trade flows.

The UAE is home to more than 6,000 Chinese businesses and was recently added to the expanded BRICS trade bloc.

FAB’s growth strategy

With a market capitalisation of Dhs152.7bn as of February 29, 2024, FAB reported a 63 per cent increase in net profit to Dhs4.01bn for the quarter ended December 31, supported by lower impairment charges and improved margins.

The bank’s annual net profit rose to Dhs16.4bn in 2023 from Dhs13.4bn a year earlier. FAB’s total assets jumped by more than 5 per cent year-on-year (YoY) to a record Dhs1.17tn, driven by sizeable deposit inflows deployed across loans, investments, and central bank placements.

The Abu Dhabi-listed lender pledged to facilitate Dhs500bn in sustainable and transition financing by 2030.

Read: FAB issues 5-year $800m sukuk, marks first for the year globally