FAB Achieves AED 12.9 Billion Net Profit In First Nine Months Of 2024 Driven By Strong Revenue Growth

First Abu Dhabi Bank (FAB) reported strong financial performance in the first nine months of 2024. The bank's revenue increased by 16% year-on-year to AED23.9 billion, while profit before tax rose by 15% to AED15.3 billion. Net profit grew by 4% year-on-year to AED12.9 billion during this period and by 5% in the third quarter of 2024, reaching AED4.5 billion.

The bank's total assets reached AED1.2 trillion, marking a 5% growth in the first nine months of the year. Loans and advances increased by 9% to AED528 billion, and deposits grew by 8% to AED820 billion over the same timeframe. FAB's international operations also saw significant growth, with revenue rising by 33%, and these assets now account for 26% of the Group’s total.

FAB's international network continued its upward trajectory, contributing significantly to overall growth. The non-performing loan (NPL) ratio was maintained at a healthy 3.8%, while the liquidity coverage ratio (LCR) stood at a robust 140%. These figures reflect FAB's solid asset quality and financial stability.

The bank's operational efficiency remained strong, supported by ongoing investments in talent and technology, resulting in a cost-to-income ratio of 24.3%. This efficiency has been instrumental in driving FAB’s strategic goals forward.

The strategic execution at FAB has generated substantial value for shareholders, achieving a return on tangible equity of 17.1% for the first nine months of 2024. This performance aligns with the bank’s target of exceeding a return on tangible equity of above 16% for both this year and the medium term.

Hana Al Rostamani, Group Chief Executive Officer of FAB, stated that the consistent net profit growth over three quarters highlights their client-focused strategy's effectiveness in creating investor value. "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," she said.

Commitment to Sustainable Financing

FAB continues to play a pivotal role as a regional financial leader, supporting clients' future investments through sustainable financing projects. The bank has facilitated projects worth AED216 billion towards its goal of AED500 billion by 2030, underscoring its commitment to sustainability.

Lars Kramer, Group Chief Financial Officer of FAB, noted that strong business momentum underpinned by favourable economic conditions contributed significantly to volume growth and rising revenues. "Our international franchise has played an important role in delivering diversified sources of growth," he commented.

Kramer also highlighted that international revenue now represents 22% of Group revenue due to a remarkable year-on-year increase of 33%. He further emphasised that FAB's credit profile remains solid with an AA- rating from Fitch Ratings.

The bank is well-positioned to navigate changing market conditions due to its strong asset quality and balance sheet fundamentals. This stability allows FAB to continue leveraging its diversified franchise for deeper client relationships and sustained growth.

With inputs from WAM