First Abu Dhabi Bank reports 19% rise in nine-month net profit

First Abu Dhabi Bank (FAB) has reported Dhs10.9bn in group net profit for the first nine months of 2022, rising 19 per cent year-on-year.

The bank’s total income stood at Dhs18bn, up 13 per cent year-on-year, driven by 18 per cent growth in net interest income. However, the income figure for the nine-month period also includes a Dhs3.1bn net gain on Magnati’s stake sale to Brookfield Asset Management earlier this year.

Read: Brookfield to buy 60% of First Abu Dhabi Bank’s payment arm

The net impairment charges stood at Dhs1.7bn, 11 per cent lower year-on-year, while the lender’s operating costs for Q1-Q3 totalled Dhs4.7bn, up 6 per cent year-on-year, excluding Bank Audi Egypt.

#FAB reports Group Net Profit of AED 10.9 Billion for the nine months 2022, up 19% year-on-year.

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— FAB Connects (@FABConnects) October 26, 2022

Q3 2022
The group net profit for the third quarter of the year reached Dhs2.9bn, up 12 per cent quarter-on-quarter, excluding gains recorded in Q2 from Magnati’s stake sale. Meanwhile, the third quarter’s operating income stood at Dhs5.5bn, up 10 per cent quarter-on-quarter, driven by higher interest and non-interest income, the lender said in a statement.

Operating costs reached Dhs1.6bn, up 1 per cent quarter-on-quarter and 1 per cent year-on-year. Meanwhile, loans, advances and Islamic financing stood at Dhs465bn, up 2 per cent sequentially and 14 per cent year-to-date. Customer deposits equalled Dhs746bn, up 15 per cent sequentially and 21 per cent year-to-date (YTD).

The lender also reported an NPL ratio of 3.4 per cent and provision coverage of 103 per cent.

“We produced a record net profit of Dhs10.9bn, up 19 per cent from the same period last year, reflecting the strong underlying performance of our core businesses. In Egypt, we have completed our integration activities which will enable us to unlock new opportunities for our growing base in one of our priority markets,” said Hana Al Rostamani, group CEO, First Abu Dhabi Bank.

“Our commitment to sustainability continues to underline everything we do and as the attention of the world turns to COP 27, we are proud to be a part of the progress by working towards a net zero future.”

“The group generated a net profit of Dhs2.9bn in the third quarter of 2022, up 12 per cent sequentially on an underlying basis. Underlying operating performance continues to be strong with Q3’22 revenue up 10 per cent sequentially, supported by positive momentum across core businesses, increased client flow and cross-sell in Global Markets, and the impact of higher interest rates as we continue to significantly benefit from the shift in the rates cycle,” added James Burdett, group chief financial officer.

“Group liquidity position strengthened with Group LCR at 171 per cent, while Group CET1 improved sequentially to 13.1 per cent, owing to strong capital generation and the positive outcome of our ongoing efforts to optimise risk-weighted assets.”

In August, FAB announced the launch of a multiple-thematic fund, through which investors would be able to access global investment opportunities across themes and trends arising from long-term structural changes.

Read: First Abu Dhabi Bank launches multiple-thematic fund