First Abu Dhabi Bank reports highest ever net profit in 2022
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First Abu Dhabi Bank reports highest ever net profit in 2022

First Abu Dhabi Bank reports highest ever net profit in 2022

The bank’s total income stood at Dhs23.9bn, increasing 10 per cent year-on-year, compared to Dhs21.7bn recorded in 2021

First Abu Dhabi Bank reports highest ever net profit in 2022

First Abu Dhabi Bank (FAB), the UAE’s largest lender by assets, has reported a full year group net profit of Dhs13.4bn for 2022.

Net profit rose 7 per cent year-on-year, against Dhs12.5bn recorded in 2021.

“In achieving the group’s highest annual revenue and net profit to-date, FAB has strengthened its strategic position to build a future-proof bank, and to advance the interests of our customers, community, and all our stakeholders,” said chairman Sheikh Tahnoon bin Zayed Al Nahyan.

“In line with our firm commitment to create long term sustainable value for our shareholders, FAB’s board of directors is recommending a cash dividend per share of 52 fils for the full year ended December 31, 2022, compared to 49 fils in 2021.”

Total income stood at Dhs23.9bn, up 10 per cent year-on year, driven by a 23 per cent growth in net interest income and gain on the Magnati stake sale. Impairment charges for 2022 (net) totalled Dhs2.8bn, rising 7 per cent against the previous year.

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

Meanwhile, total assets stood at Dhs1.1tn, up 11 per cent year-on-year;  loans, advances and Islamic financing increased 12 per cent to Dhs460bn; and customer deposits soared 14 per cent to equal Dhs701bn. The lender’s NPL ratio was at 3.9 per cent, with a provision coverage of 98 per cent.

“Strong business volumes have underlined healthy pipeline execution across our diversified business model, while the fundamental strength of our balance sheet, underpinned by a strong liquidity profile and efficient capital management, allowed us to drive improvements in Common Equity Tier 1 (CET1) despite market and regulatory headwinds,” added Hana Al Rostamani, FAB’s group chief executive officer.

“In line with our strategy to diversify sources of income and expand internationally, we continued to consolidate and build our presence in priority markets, including in Egypt through FABMisr.”

Operating costs also spiked 15 per cent year-on-year to reach Dhs6.7bn, driven by integration of operations in Egypt, write-off of legacy systems in the fourth quarter of 2022 and continued investments, the lender added.

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