FAB profit surges 107% to record Dh5.1b in Q1

Net profit of the largest UAE lender by assets rose to Dh5.1 billion from Dh2.5 billion recorded in Q1 2021 and 54 per cent quarter-on-quarter, driven by the sale of its majority stake in its payments business and improved performance of the bank’s core business



Hana Al Rostamani, group CEO of FAB, said the bank’s 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. — File photo
Hana Al Rostamani, group CEO of FAB, said the bank’s 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. — File photo
by

Issac John

Published: Thu 28 Apr 2022, 5:55 PM

First Abu Dhabi Bank reported on Thursday a 107 per cent year-on-year jump in group net profit for the first quarter of 2022, its highest ever quarterly net profit.

Net profit of the largest UAE lender by assets rose to Dh5.1 billion from Dh2.5 billion recorded in Q1 2021 and 54 per cent quarter-on-quarter, driven by the sale of its majority stake in its payments business and improved performance of the bank’s core business. The total income of the lender stood at Dh7.3 billion, including Dh2.8 billion net gain on the disposal of a majority stake in payments business Magnati.

Net profit attributable to shareholders for the three months to the end of March surged to Dh5.1 billion, FAB said in a statement. The first-quarter profit far exceeds Arqaam Capital’s forecast of Dh3.05 billion.

Hana Al Rostamani, group CEO of FAB, said the bank’s 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. 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,” said Al Rostamani.

“Looking ahead and despite ongoing global uncertainty, we see significant momentum in the UAE which FAB is very well positioned to support and capitalise on,” she added.

James Burdett, group chief financial officer, said FAB’s underlying operating performance was healthy as growth picked up across all business segments, particularly at the tail-end of the quarter with group loans expanding 6.0 per cent year-to-date, and margins improving. The deposit mix also improved with Current and Savings Accounts (CASA) adding Dh22 Billion sequentially to represent 52 per cent of total customer deposits. “In an increasing interest rate environment, this places us in good stead to deliver higher returns in the coming quarters,” he said.

Burdett noted that the bank’s balance sheet fundamentals are solid across liquidity, funding, and capital ratios, with Common Equity Tier 1 ratio at 13 per cent as of March-end 2022. “This foundation, along with our core strengths and long-term strategy, position us very well to serve our customers across our global network, whilst delivering enhanced and sustainable returns to our shareholders.”

— issacjohn@khaleejtimes.com


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