The UAE’s largest bank, First Abu Dhabi Bank (FAB), has reported a net profit of $1.38 billion (AED 5.1 billion) in the three-month period ending 31 March 2022, marking a 107 percent increase compared to a net profit of $680.62 million (AED 2.5 billion) in Q1 2021.
The results represent the highest quarterly net profit in the bank’s history, according to a stock market missive shared on the Abu Dhabi Securities Exchange.
The bank’s total income reached $1.98 billion (AED 7.3 billion) and includes a $762.29 million (AED 2.8 billion) net gain on the disposal of majority stake in payments business Magnati.
The First Abu Dhabi Bank’s group chief executive officer, Hana Al Rostamani, said: “Our core businesses performed well during a period of sustained buoyant economic activity in the UAE, capitalising on a healthy pipeline, and growing business and consumer confidence.
“Our results in the first quarter include a gain from the sale of a majority stake in Magnati, crystallising significant value for our payments business and paving the way for accelerated growth with a long-term strategic partner as we remain at the forefront of the region’s payments and digital agenda.”
Operating expenses were up year-on-year on the back of ongoing investments in digital and strategic initiatives and the inclusion of Bank Audi Egypt from Q2 2021.
The First Abu Dhabi Bank also demonstrated strong fundamentals across asset quality, liquidity, funding and capital metrics.
Hana Al Rostamani (pictured below) added: “Internationally, we continued to expand our presence into new, targeted markets. Egypt remains a strategically important market for the Group, and the integration of Bank Audi Egypt is on track for completion within the next few months.
“Our Shanghai branch became operational in March, and we opened a representative office in Iraq, serving as a strategic addition to our geographic footprint as the UAE continues to be one of Iraq’s most important trading partners.”
Annualised earnings per share (EPS) was up 113 percent at AED 1.84, up 113 percent compared to the first quarter of 2021.
First Abu Dhabi Bank also reported an increase in operating income to $1.22 billion (AED 4.5 billion), up 2 percent year-on-year or 9 percent, on an underlying basis excluding Magnati-related gains and real estate gains in Q1 2021.
Impairment charges raised to $124.4 million (AED 457 million), compared to $127.9 million (AED 470 million) in the first quarter of 2021.
Operating costs were at $408.37 million (AED 1.5 billion), reflecting ongoing strategic and digital investments Loans, advances and Islamic financing at $118.15 billion (AED 434 billion), up 15 percent year-on-year and 6 percent year-to-date.
Customer deposits in First Abu Dhabi Bank increased to $163.34 billion (AED 600 billion), up 6 percent year-on-year, down 2 percent year-to-date; Deposit mix improved with CASA balances adding $5.98 billion (AED 22 billion) sequentially to represent 52 percent of total customer deposits.
Liquidity Coverage Ratio (LCR) increased by 120 percent, underlining a strong liquidity position.
Healthy asset quality metrics with NPL ratio was at 3.8 percent, and adequate provision coverage at 98 percent.
Common Equity Tier 1 (CET1) increased to reach 13.0 percent, comfortably above regulatory requirements, representing a solid capital position, according to the First Abu Dhabi Bank’s financial statements.
Follow us on
