Net Profit Reaches Dh12.9 Billion in First Nine Months of 2024

FAB’s Stellar Performance: A Testament to Robust Client Engagement and Growth in 2024

By [Your Name] | October 21, 2024

In an era where financial institutions constantly strive for growth and stability, First Abu Dhabi Bank (FAB) stands out with impressive performance metrics for the first nine months of 2024. Reporting a substantial uptick in both revenue and profit, FAB has cemented its position as a cornerstone of the UAE’s financial landscape.

Revenue and Profit Surge

FAB’s recent announcement revealed a remarkable 16% year-on-year increase in revenue, totaling an impressive Dh23.9 billion. Equally noteworthy, the Bank’s profit before tax soared to Dh15.3 billion, marking a 15% rise compared to the same period last year. The net profit figures also tell a compelling story, with an increase of 4%, bringing the total to Dh12.9 billion, while the third quarter of 2024 witnessed an impressive 5% growth, leading to a profit of Dh4.5 billion.

This robust performance isn’t just a matter of numbers; it reflects the heightened client activity across FAB’s diverse offerings. With total assets reported at Dh1.2 trillion, the bank experienced a growth rate of 5% over the first nine months. Furthermore, loans and advances surged by 9%, totaling Dh528 billion, while deposits rose by 8% to reach Dh820 billion.

International Growth and Diversified Income

One of the standout elements of FAB’s performance is its international growth. The bank reported a staggering 33% revenue increase from its international client segment, which now accounts for 26% of the group’s total assets. This growth is particularly significant as it indicates that FAB is effectively leveraging its international presence to tap into new markets and opportunities, thereby diversifying its income streams.

Hana Al Rostamani, the Group Chief Executive Officer of FAB, emphasized the bank’s client-centric approach, suggesting that it has driven significant momentum in revenue expansion. “Our commitment to enhancing customer engagement across wholesale banking and personal banking has resulted in double-digit growth, both locally and internationally,” Al Rostamani noted. This growth is particularly salient in an increasingly competitive banking environment where understanding and responding to client needs is paramount.

Strong Asset Quality and Operational Efficiency

Beyond revenue and profit, FAB’s asset quality remains robust, signaling a bank that not only grows but does so sustainably. The non-performing loan (NPL) ratio stands at 3.8%, which is healthy for the banking sector. Moreover, the liquidity coverage ratio (LCR) has been reported at a solid 140%, allowing FAB to weather financial uncertainties effectively.

Operational efficiency is another highlight of FAB’s performance; the bank achieved a low cost-to-income ratio of 24.3%. This efficiency is underpinned by continuous investments in talent and technology, ensuring that the bank remains competitive and agile in the face of changing market dynamics.

Focus on Sustainable Financing

FAB’s strategic focus is not just on financial growth but also on sustainability. The bank has made significant strides in facilitating sustainable and transition financing projects, with the total amount now standing at Dh216 billion. This initiatives contribute to the ambitious target of Dh500 billion aimed for 2030, underscoring FAB’s commitment to not only serve its clients but also to support broader environmental goals in the region.

Financial Resilience and Outlook

Lars Kramer, the Group Chief Financial Officer, emphasized the underlying factors contributing to FAB’s impressive third quarter results. “We continue to leverage our diversified franchise to deepen client relationships, supported by strong business momentum and favorable economic conditions,” Kramer stated.

The bank’s AA- credit rating, recently reaffirmed by Fitch Ratings, reflects a strong credit profile and solid balance sheet fundamentals. This rating positions FAB well to navigate an ever-evolving financial landscape, offering a reassuring signal to both investors and clients alike.

Conclusion

With a proven track record of strategic execution and a clear commitment to enhancing customer engagement, First Abu Dhabi Bank is not just growing; it is thriving. The bank stands as a vital player in the regional financial sector, illustrating what can be achieved through client-focused strategies, sustainability initiatives, and operational excellence. As FAB gears up for the latter part of 2024, all eyes will be on how it continues to evolve and expand its offerings to meet the dynamic needs of its clients.

For financial institutions looking for a model of success, FAB serves as an exemplary case where strategic vision aligns with robust execution.

Tags: #UAE #BusinessNews #EconomyNews #RealEstateNews