FAB reports net profit of AED12.9 billion for 9M’24

First Abu Dhabi Bank (FAB) delivered robust results in the first nine months of 2024 as increased client activity across the Group’s franchise lifted revenue 16% higher year on year (YoY) to AED23.9 billion and propelled profit before tax to AED15.3 billion, up 15%.

Net profit rose 4% YoY to AED12.9 billion in the first nine months and by 5% YoY in Q3’24 to AED4.5 billion. Total assets of AED1.2 trillion recorded growth of 5% in the first nine months, with loans and advances up 9% to AED528 billion and deposits rising 8% to AED820 billion over the same period.

Growth momentum in FAB’s international network continued to accelerate, with revenue rising 33% in the first nine months and assets in that client segment now representing 26% of the Group’s total.

Asset quality remained strong, with a non-performing loan (NPL) ratio of 3.8% and a liquidity coverage (LCR) ratio of 140%. Robust operating efficiency, supported by continued investments in talent and technology, delivered a cost-to-income ratio of 24.3%.

The value created for shareholders by the strength of FAB’s strategic execution produced a return on tangible equity of 17.1% in the first nine months of 2024 on track to achieve the bank’s 2024 and medium-term guidance of above 16%.

Hana Al Rostamani, Group Chief Executive Officer of FAB, said, “FAB’s third consecutive quarter of net profit growth, with earnings underpinned by robust YoY revenue expansion, shows clearly that our client-centric approach to strategy execution creates value for investors.

Our commitment to enhancing customer engagement and broadening relationships across wholesale banking and personal banking and wealth management segments has driven momentum in the Group’s performance in the first nine months of the year, resulting in a double digit growth both locally and across FAB’s international franchise. Our network remains a clear differentiator for clients and a competitive strength for the Group, supporting our strategic ambitions to expand and diversify our revenue base.

The growth in our total assets to AED1.2 trillion highlights the key role FAB plays as the region’s international financial powerhouse in supporting the ambitions of our clients as they invest for the future. So does our further progress in facilitating sustainable and transition financing projects, with the total now standing at AED216 billion, or 43% of our 2030 target of AED500 billion.”

Lars Kramer, Group Chief Financial Officer of FAB, commented, “The Group produced a net profit of AED4.5 billion in the third quarter of 2024, on the back of a number of important factors. Strong business momentum supported by robust economic conditions were reflected in volume growth, rising revenues and diversified income streams, as we continue to leverage our diversified franchise to deepen client relationships.

Our international franchise, in particular, has played an important role in delivering diversified sources of growth. International revenue growth of 33% YoY now sees this segment represent 22% of Group revenue. Our credit profile remains solid with our AA- rating recently reaffirmed by Fitch Ratings, while our strong asset quality and balance sheet fundamentals position us well to navigate an ever-evolving environment.”