The UAE, the company’s largest market, saw high growth in merchant payments processed from domestic consumers at 20 per cent year on year, and payments from international visitors growing 92 per cent
First Abu Dhabi Bank (FAB), the biggest UAE lender, reported on Thursday a 50 per cent jump in first-half net profit to Dh8 billion underpinned by higher revenue and moderate cost of risk.
In a statement, FAB said its total income at Dh12.5 billion surged 31 per cent year-on-year, including Dh3.1 billion net gain on sale of a majority stake in its payments firm Magnati.
Hana Al Rostamani, group CEO, said FAB delivered a strong performance in the first six months of 2022 despite heightened global market volatility.
“Our core businesses maintained solid growth momentum reflecting healthy pipeline execution across our diversified franchise, and our ongoing strategic focus on deepening client relationships.”
She said almost Dh50 billion net incremental lending was extended by FAB year-to-date, which is a record for the group for any half-year period.
“This demonstrates buoyant regional activity, FAB’s leading origination capabilities, and the fundamental strength of our balance sheet as we continued to deploy our resources and expertise to support our client franchise with their local and cross-border banking needs.”
“Looking ahead, we must recognise a more challenging global economic outlook marked by turbulent market conditions and inflationary pressures. As we enter the second half of the year, we remain committed to our clients and stakeholders, and confident in our ability to deliver sustainable shareholder returns as we pursue our growth and transformation plans,” said Al Rostamani.
James Burdett, group CFO, said the bank produced another solid set of results in the second quarter with a net profit of Dh2.9 Billion, up 13 per cent sequentially on an underlying basis, bringing first half 2022 profit to Dh8.0 billion. Annualised return on tangible equity for the first half of 2022 improved to 19.5 per cent from 13.6 per cent in H1’21.
“In the last quarter, all our core businesses delivered top line growth sequentially, led by a double-digit growth in investment banking and corporate and commercial banking, which is a strong result in the context of adverse global market conditions. Risk was prudently managed across the Group, while the year-on-year growth in operating expenses reflects continued investments in franchise growth and transformation,” he said.
FAB maintained a strong liquidity position, with group liquidity coverage ratio at 135 per cent, and the balance sheet is optimally positioned to continue to benefit from rising interest rates. Despite balance sheet growth and market and regulatory headwinds, capital buffers remain strong, with Common Equity Tier 1 (CET1) at 12.6 per cent, said Burdett.
Operating expenses surged 10 per cent in the quarter to Dh1.6 billion due to continued investments in franchise growth and transformation.
The bank’s non-performing loans ratio was at 3.6 per cent in the quarter, down from 3.9 per cent a year earlier and 3.8 per cent in the first quarter. Its liquidity coverage ratio was 135 per cent, up from 119 per cent a year earlier.
Loans, advances and Islamic financing rose six per cent to Dh459 billion sequentially and 12 per cent year to-date. Double-digit loan growth reflects sustained business momentum, while liquidity, asset quality and capital position remain strong
Customer deposits at Dh648 billion was up eight per cent sequentially and five per cent year to date; CASA balances at Dh 291 billion, are up 15 per cent yoy basis.
— issacjohn@khaleejtimes.com
The UAE, the company’s largest market, saw high growth in merchant payments processed from domestic consumers at 20 per cent year on year, and payments from international visitors growing 92 per cent
The company's strong balance sheet will support the company’s growth strategy, including investments in digital and technological infrastructure as well as its active merger and acquisition pipeline
The company’s revenue increased 31 per cent to Dh1.041 billion as compared to Dh792 million in first half of 2021 while its operating costs dropped 16 per cent
Kashkari sticks to his view of 3.9% Fed funds rate at end-2022; Evans sees 3.4% policy rate this year; Both push back on market expectation for rate cuts next year; Inflation, employment data to determine size of Sept rate hike
Approval would save time, money on Asian routes; Q2 net profit $100m versus loss of $81m a year ago; Revenue up sharply, but still below Q2 in 2019
The transaction includes solar power projects in Turkey’s Karapanar and Gaziantep regions and a wind power project in Ankara
The five-year contract was awarded by Adnoc Offshore to Adnoc Logistics and Services (Adnoc L&S) and underpins the world-class capabilities within Adnoc’s group companies
Offering could be part of govt announcement to list 10 entities on local stock market