FAB Q1 group net profit at Dhs2.5bn; initiates share transfer to acquire Bank Audi sae Egypt

First Abu Dhabi Bank (FAB), the UAE’s largest bank, has reported group net profits of Dhs2.5bn for the first quarter ended March 31, 2021, up 3 per cent compared to Dhs2.4bn in Q1 2020.

Revenue was 4 per cent lower year-on-year, as lower net interest income due to the rate cuts in 2020, was partially offset by higher other income.

The bank said in a statement that its net impairment charges were 36 per cent lower year-on-year reflecting improving economic conditions and adequate provision buffers, while operating expenses reduced 3 per cent as the group maintained cost discipline, while investing in digital and strategic initiatives.

FAB also said that it has launched “Magnati”, payments platform. It added that FAB Green Bonds now exceed $1bn.

Read: First Abu Dhabi Bank approves Dhs8.08bn cash dividends for 2020

FAB also announced that it has initiated the process of share transfer for 100 per cent of the share capital of Bank Audi sae (Egypt), Lebanon-based Bank Audi’s subsidiary in Egypt.

Once the share transfer is complete, FAB will begin integrating the assets and operations of Bank Audi sae (Egypt) and FAB Egypt, with the integration process expected to be finalised in 2022.

Following share transfer completion, this acquisition will make FAB one of Egypt’s largest foreign banks by assets with pro-forma total assets of more than EGP130bn ($8.5bn) as of Dec 31, 2020.

“This acquisition represents an important strategic milestone for FAB’s international ambitions, accelerating FAB Group’s expansion in a high-potential market. It will significantly increase the size, scale and experience of FAB Egypt, adding greater depth and reach to the value we offer our customers both locally and globally,” said Hana Al Rostamani, group CEO of FAB.

FAB Egypt’s CEO, Mohamed Abbas Fayed, will be appointed as country CEO of the combined entity. Fayed joined FAB in 2019 and was previously Bank Audi sae (Egypt) chief executive and managing director and brings with him three decades of banking experience with a unique understanding of the Egyptian market.