FAB reports Dhs17.1bn in net profit for 2024

First Abu Dhabi Bank (FAB), the UAE’s largest lender, reported a 4 per cent year-on-year increase in net profit for 2024 to Dhs17.1bn ($4.66bn), supported by strong revenue growth and robust business volumes.

The bank’s revenue surged 15 per cent to Dhs31.6bn, driven by diversified income streams and operating efficiencies.

FAB’s profit before tax rose 13 per cent year-on-year to Dhs19.9bn, reflecting heightened client activity and expansion across key financial markets.

In Q4, net profit climbed 4 per cent to Dhs4.2bn, while revenue increased 11 per cent to Dhs7.7bn.

The bank’s Board of Directors has recommended a cash dividend of 75 fils per share for the full year, amounting to a total payout of Dhs8.3bn.

The proposal, which represents 51 per cent of the net profit available for distribution, is subject to shareholder approval at FAB’s Annual General Meeting on March 11, 2025.

FAB: Expansion and strategic growth

FAB’s asset base expanded in 2024, with total assets rising 4 per cent year-on-year to Dhs1.21tn. Loans, advances, and Islamic financing grew 9 per cent to Dhs529bn, while customer deposits increased 3 per cent to Dhs782bn.

The bank’s international operations, which now span 20 key financial markets, saw revenue grow 32 per cent year-on-year, reinforcing FAB’s global footprint.

“FAB’s performance in 2024 cements consecutive years of expanded scale and improved profitability, demonstrating steady progress against our group strategy as the UAE’s global bank,” said Sheikh Tahnoon Bin Zayed Al Nahyan, chairman of FAB.

Hana Al Rostamani, FAB’s group CEO, highlighted the bank’s strategic achievements: “Our strategy produced robust results in the UAE, our thriving home market, while powering the expansion of our international franchise. We diversified growth across customer segments and sources of income, growing international revenue by 32 per cent.”

FAB’s return on tangible equity (RoTE) for 2024 stood at 16.8 per cent, aligning with its medium-term target of above 16 per cent.

Operational highlights and ESG initiatives

FAB continued its expansion in wholesale banking, with investment banking revenue growing 19 per cent year-on-year, while global markets revenue increased by 18 per cent.

Corporate and commercial banking also posted strong gains, aided by digital innovations such as the Commercial Banking Service Accelerator.

Retail banking saw a 20 per cent increase in new customers, with lending and deposits rising 15 per cent and 17 per cent, respectively.

Private banking assets under management surged 75 per cent year-on-year, while revenue in consumer and private banking rose 18 per cent and 15 per cent, respectively.

On the environmental, social, and governance (ESG) front, FAB facilitated Dhs267bn in sustainable and transition financing, surpassing half of its 2030 target of Dhs500bn.

The bank also became the first in the region to publish a Taskforce on Nature-related Financial Disclosures (TNFD) report, aligning its financial practices with environmental resilience.

“We will continue to invest in technology and innovation to enhance our services, drive efficiencies, and grow our competitive edge, ensuring strong, sustainable shareholder returns,” Al Rostamani added.

Financial outlook

Lars Kramer, FAB’s group CFO, said that the bank’s strong performance was underpinned by revenue exceeding Dhs30bn for the first time. “Our solid balance sheet fundamentals, resilient net interest margin profile, and diversified business model position us well to continue delivering profitable growth and achieving our return targets,” he said.

FAB’s capital and liquidity positions remained strong, with a common equity tier 1 (CET1) ratio of 13.7 per cent and a liquidity coverage ratio (LCR) of 142 per cent.

Looking ahead, FAB aims to capitalise on regional and international opportunities while supporting the UAE’s economic ambitions.

“As the UAE’s global bank, we remain committed to fostering sustainable growth and connecting local, regional, and international economies within a world-class financial ecosystem,” Sheikh Tahnoon said.

Read: FAB reports Dhs12.9bn in net profit for Jan-Sept ’24