FAB reports net profit of Dh9.4b
First Abu Dhabi Bank (FAB) has reported its financial results for the nine-month period ended September 30, 2019, with group net profit standing at Dh9.4 billion, up four per cent year-on-year.
Annualised earnings per share (EPS) stood at Dh1.1, compared to Dh1.07 in the first nine months of 2018, while third quarter net profit was recorded at Dh3.1 billion, up three per cent year-on-year and driven by a five per cent increase in operating income. Group revenue was recorded at Dh15.2 billion, up four per cent year-on-year, and the cost-to-income ratio (ex-integration costs) was recorded at 26.5 per cent. Cost of risk (CoR) was 49bps, compared to 51bps in the same period last year.
Commenting on the bank's performance, Abdulhamid Saeed, group chief executive officer of FAB, said: "Our financial results for the third quarter of the year reflect a solid performance characterised by the effective execution of our strategy to drive growth and transformation as we remain firmly on track to unlock our full potential. Group net profit for the first nine months of 2019 grew four per cent to Dh9.4 billion, driven by positive momentum in our Corporate and Personal Banking businesses, as we continue to leverage on our competitive strengths across our global network. Our performance is met with consistent cost and risk discipline, whilst we continue to put our customers first and invest in technology and digital infrastructure to enhance FAB's overall banking proposition."
"Internationally, we are on track to implement our strategy in targeted markets, including Saudi Arabia, where we are serving a growing client base and will open a second branch in the city of Khobar shortly," he added. "We are entering the last quarter of 2019 with a robust balance sheet, strong capital and liquidity ratios, stable asset quality, and improved returns. Further emphasising the bank's strong financial position, we were pleased to see FAB being recognised once again this year as the safest bank in the Middle East. Despite a more challenging global and regional outlook, we remain on a solid track to achieve a record performance in 2019, and maximise shareholder returns."
FAB's total assets stood at Dh788 billion, up six per cent year-to-date, while Risk Weighted Assets (RWA) grew marginally by one per cent over the same period. Loans and advances stood at Dh378 billion, up three per cent sequentially and seven per cent from December-end 2018, led by government and public sector lending. Customer deposits were recorded at Dh477 billion, up three per cent sequentially and a two per cent increase from December-end 2018.