FAB annual profit jumps 19% to Dh12.5b

The bank said the performance reflected positive underlying trends across core businesses in a year of economic rebound and expansion.



FAB proposed dividends subject to shareholders approval at FAB’s General Assembly Meeting to be held on February 28 2022. — File photo
FAB proposed dividends subject to shareholders approval at FAB’s General Assembly Meeting to be held on February 28 2022. — File photo
by

Issac John

Published: Thu 27 Jan 2022, 6:51 PM

First Abu Dhabi Bank (FAB), the UAE’s largest bank, reported on Thursday a record set of results with a net profit of Dh12.5 billion, marking 19 per cent jump year-on-year.

The bank said the performance reflected positive underlying trends across core businesses in a year of economic rebound and expansion.

Group revenue was up 17 per cent supported by a strong trading performance and growth in fee-generating business, helping to offset headwinds from low interest rates. Operating expenses were up year-on-year reflecting on-going investments in digital and strategic initiatives, and the inclusion of Bank Audi Egypt.

FAB proposed dividends subject to shareholders approval at FAB’s General Assembly Meeting to be held on February 28, 2022.

Total assets of the bank exceeded Dh1 trillion, up 9.0 per cent year-on-year as ccustomer deposits surged 14 per cent to Dh614 billion.

Loans, advances and Islamic financing increased by 6.0 per cent to Dh 410 billion while NPL ratio remained at 4.0 per cent with provision coverage at 98 per cent. Capital adequacy remained above regulatory requirements with Common Equity Tier 1 (CET1) at 12.4 per cent post proposed dividend, the bank said.

Sheikh Tahnoon bin Zayed Al Nahyan, Chairman of the FAB, said FAB enters this year with an integral role to play in furthering economic prosperity in the markets we serve. “I am confident in the opportunities that lie ahead for the Group as we boost our journey of growth in 2022 and beyond.”

FAB’s board of directors is recommending a dividend per share of 70 fils equivalent for the full year ended December 31, 2021, split into 49 fils in cash and 21 fils as scrip dividend in lieu of cash, said Sheikh Tahnoon.

Hana Al Rostamani, group executive officer, said 2021 was also a landmark year for FAB on the international front, as it continued to expand in its targeted markets, helped by the acquisition of Bank Audi Egypt.

“As a result, revenue from our international operations grew 26 per cent year-on-year, with Mena contributing 52 per cent, from 39 per cent in 2020.”

She said FAB delivered record revenue and net profit in a year of economic rebound, and with total assets crossing the Dh1 trillion mark, a historic milestone.

“This outstanding performance not only reflects the solid momentum across our core businesses in an improved macroeconomic backdrop, but also the positive outcome of our strategic initiatives to drive growth and shape the bank of the future.”

James Burdett, group chief financial officer, said the bank’s record performance was driven primarily through revenue growth, with a significant expansion in non-interest income reflecting effective balance sheet deployment to drive higher group returns. “Investment Banking produced an exceptional performance, capitalising on improving sentiment, and buoyant regional capital markets activity. Corporate and commercial banking also saw sustained momentum with CASA balances growing 27 per cent year-on-year,” said Burdett.

— issacjohn@khaleejtimes.com


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