FAB announces net profit of AED 12.4 billion in the first 9 months of 2023

First Abu Dhabi Bank (FAB) achieved record performance in the first nine months of 2023, reporting that net profit for the period reached AED 12.4 billion, up 58% year-on-year on an underlying basis (excluding gains related to Magnati). in 2022).

Revenue was AED 20.5 billion, up 38% year-on-year, reflecting the successful and sustained execution of the bank’s growth strategy.

FAB announced that return on tangible equity improved to 18.3% and net profit for the third quarter of 2023 increased 46% to AED 4.3 billion, the highest ever recorded on an underlying basis, with revenue increasing by 27% at 7.0 AED. billion.

Hana Al Rostamani, CEO of FAB Groupsaying,

“In the third quarter of 2023, we achieved strong results that contributed to a record net profit of AED 12.4 billion for the first nine months of 2023. Additionally, group revenue exceeded AED 20 billion. FAB’s reaffirmed superior credit ratings of AA- (or equivalent), our international and diversified franchise, our financial strength and ample liquidity, are among the various competitive strengths that position us well to continue our steady progress toward our strategic objectives.

With climate finance being a critical factor in climate progress, FAB is making progress on multiple fronts, including supporting the energy transition and providing green finance, as well as minimizing its footprint and leading change across the region. FAB was the first GCC bank to join the industry-led, UN-convened Net Zero Banking Alliance (NZBA).

As a leading voice in the regional financial sector related to sustainability, we are fully aligned with Abu Dhabi and the UAE’s ambitions to deliver a sustainable future for all. This is underlined by our strategic partnership with COP28, as well as our commitment to net zero emissions by 2050.

“As markets strengthen their trade flows and form broader economic partnerships around the world, FAB’s international franchise ensures we continue to play our unique role as a facilitator of global trade and investment.”

Lars Kramer, CFO of the FAB Groupsaying,

“FAB produced another strong set of results in the third quarter of 2023, generating double-digit growth in top and bottom lines and building on the core growth momentum achieved since the beginning of the year. Return on tangible capital for the first nine months of 2023 improved to 18.3%, and the Group’s CET1 reached 14.2% in September 2023, underlining strong capital accumulation.

Operating income grew 38% year over year due to continued expansion in net interest income along with growth in diversified revenue streams, demonstrating our continued strategic focus on deepening customer relationships across our franchise. global.

On top of that, FAB aims to facilitate $75 billion in sustainable finance projects by 2030 and has already financed over $18 billion in 9M’23 and $27 billion year-to-date from baseline 2022. Green finance and sustainable finance are growth markets, and the upcoming COP28 forum will showcase our leadership in this area and accelerate our reach and capability.

FAB’s growth was driven by its diversified franchise and business model. Total assets amounted to approximately AED 1.2 trillion as the bank continued to drive cross-border trade, economic growth and the transition to a low-carbon future across its global network.

Non-interest income grew by 46% in 9M’23, contributing 35% to the Group’s income, while international operations grew by 31% year-on-year to contribute 19% to the Group’s total income, reflecting the UAE’s position at the nexus of global trade and investment.

Thanks to its strong fundamentals, FAB is well positioned to navigate a changing environment and higher interest rates for longer. Despite the ongoing transformative investment, the cost-to-income ratio in 9M’23 remained healthy at 25.4%, reflecting positive numbers. FAB maintained strong capital generation and asset quality, further optimizing its capital structure in October through a maiden Tier 2 bond issuance, the largest conventional bond issuance ever by a MENA bank.

News source: Emirates News Agency