FAB Achieves Record Net Profit Of AED8.4 Billion In First Half Of 2024

First Abu Dhabi Bank (FAB) has reported record-breaking financial results for the first half of 2024. The bank achieved a net profit of AED8.4 billion and revenue of AED15.7 billion, marking a 16 percent year-on-year (YoY) growth. This underscores the bank’s consistent upward trajectory.

The profit before tax increased by 15 percent YoY to AED10.0 billion. For the second quarter of 2024, FAB recorded a net profit of AED4.3 billion, with operating income reaching AED7.8 billion, reflecting a 14 percent YoY growth.

FAB's impressive results were driven by double-digit growth in both interest and non-interest income sources. This was supported by strong business momentum, an expansion in Net Interest Margin (NIM), and an improved revenue mix. Non-Funded Income (NFI) contributed 38 percent to Group revenue, up from 35 percent in H1 2023.

As of June-end 2024, FAB solidified its status as the largest bank in the UAE with total assets amounting to AED1.2 trillion (US$320 billion). Loans, advances, and Islamic financing grew by 6 percent both year-to-date (YTD) and YoY to AED513 billion, indicating healthy demand and market share gains across key segments and geographies.

In the first half of 2024, FAB delivered a return on tangible equity (RoTE) of 17.3 percent, including an impressive 18.1 percent in Q2 2024. This demonstrates the Group’s strong focus on shareholder value.

Operational Efficiency

The Group maintained solid asset quality metrics with a non-performing loans (NPL) ratio of 3.7 percent and a robust liquidity profile shown by a liquidity coverage ratio of 152 percent. The cost-to-income ratio stood at 24.4 percent as of June-end 2024, highlighting superior operating efficiency.

Hana Al Rostamani, Group Chief Executive Officer of FAB, stated, "FAB is reaffirming its position as a leading force in the MENA banking sector, with the Group delivering another strong set of results in the second quarter and first half of 2024. Our outlook remains anchored in the strong fundamentals of the UAE and Abu Dhabi as a global economic powerhouse and preferred hub for investment, talent, and innovation. We remain on track to meet our 2024 and medium-term guidance, and to deliver sustainable shareholder returns."

Future Outlook

Lars Kramer, Group Chief Financial Officer of FAB, added, "Building on a robust first quarter, we are very pleased with our progress in the first half of 2024. We continued to achieve high returns at scale while driving diversified growth across our franchise and investing strategically in order to create future efficiencies."

The bank's performance highlights its strategic investments aimed at creating future efficiencies while maintaining high returns at scale.

The results reflect FAB's commitment to delivering sustainable shareholder returns while leveraging the strong economic fundamentals of the UAE and Abu Dhabi.

With inputs from WAM