FAB posts record H1 profit of Dhs8.4bn amid strong revenue growth

First Abu Dhabi Bank (FAB) announced record results for H1 2024, reporting a net profit of Dhs8.4bn and revenue of Dhs15.7bn, marking a 16 per cent year-on-year increase.

The bank’s profit before tax grew by 15 per cent year-on-year to Dhs10bn.

In Q2 2024, net profit reached Dhs4.3bn, while operating income was Dhs7.8bn, a 14 per cent increase from the previous year.

FAB’s robust performance was driven by double-digit growth across interest and non-interest income sources, benefitting from strong business momentum, an expansion in net interest margin (NIM), and an improved revenue mix.

Non-funded income (NFI) contributed 38 per cent to group revenue, up from 35 per cent in H1 2023.

As of June-end 2024, FAB solidified its position as the largest bank in the UAE with total assets amounting to Dhs1.2tn.

Loans, advances, and Islamic financing grew 6 per cent year-to-date and year-on-year to Dhs513bn, reflecting healthy demand and market share gains across key segments and geographies.

In H1 2024, FAB delivered a return on tangible equity (RoTE) of 17.3 per cent, including 18.1 per cent in Q2 2024, showcasing the group’s focus on shareholder value.

The bank maintained strong asset quality metrics, with a non-performing loans (NPL) ratio of 3.7 per cent and a liquidity coverage ratio of 152 per cent.

The group’s cost-to-income ratio was 24.4 per cent.

FAB: Capitalising on market opportunities

Hana Al Rostamani, group CEO of FAB, stated: “Group net profit and revenue both reached new highs, at Dhs8.4bn and Dhs15.7bn, respectively.

“We leverage our international network to capitalise on global market opportunities, actively building and expanding business corridors in alignment with national ambitions. Our outlook remains anchored in the UAE and Abu Dhabi’s strong fundamentals, aiming to deliver sustainable shareholder returns.”

Lars Kramer, group CFO of FAB, added: “Consistent growth in both interest and non-interest income sources reflects our efforts to enhance cross-selling and deepen client relationships. With our strong liquidity position and high-quality risk profile, we uphold strong fundamentals, further consolidated by our recent Tier 2 bond issuance.”

FAB reported strong performance across all business lines in H1 2024. The investment banking and global markets saw significant increases in operating income of 23 per cent and 26 per cent year-on-year, respectively.

Consumer Banking operating income advanced 16 per cent year-on-year, reflecting growth in loans, deposits, customer acquisitions, and digital service enhancements. Private banking, and corporate and commercial banking continued to accelerate client activity, with private banking reporting a 25 per cent growth in assets under management.

International revenue increased by 30 per cent year-on-year while operating income growth in the UAE remained strong at 13 per cent year-on-year.

Key operational highlights for H1 2024. FAB…

• Facilitated the development of regional capital markets, raising Dhs7bn in equity capital market transactions.
• Continued strong momentum in Egypt through FABMisr, with healthy growth in markets including Saudi Arabia and India.
• Deployed AI and Gen-AI capabilities across the group, including FAB’s first in-house conversational analytics tool and the launch of an AI Academy in collaboration with Microsoft.
• Facilitated Dhs52bn in sustainable and transition financing in Q2 2024 and Dhs78bn in H1 2024, reaching Dhs200bn towards FAB’s 2030 pledge of Dhs500bn.
• Received top ESG ratings: Best ESG Risk category of MENA banks by Sustainalytics with a Low ESG Risk rating, Best Refinitiv ESG score in the Middle East, and Best MSCI ESG Score among UAE banks.

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