First Abu Dhabi Bank (FAB) recently reported that it delivered robust results in the first nine months of 2024 as growing client activity across the group’s franchise lifted revenues 16 percent higher year-on-year to AED23.9 billion ($6.51 billion) and propelled profit before tax 15 percent to AED15.3 billion.
Net profit rose 4 percent year-on-year to AED12.9 billion in the first nine months and by 5 percent year-on-year in Q3 of 2024 to AED4.5 billion. FAB’s total assets of AED1.2 trillion recorded growth of 5 percent in the first nine months, with loans and advances up 9 percent to AED528 billion and deposits rising 8 percent to AED820 billion over the same period.
“FAB’s third consecutive quarter of net profit growth, with earnings underpinned by robust year-on-year revenue expansion, shows clearly that our client-centric approach to strategy execution creates value for investors,” stated Hana Al Rostamani, group CEO of FAB.
International network revenues surge
Growth in FAB’s international network continued to accelerate, with revenue rising 33 percent in the first nine months. In addition, assets in that client segment now represent 26 percent of the group’s total.
Asset quality remained strong, with a non-performing loan ratio of 3.8 percent and a liquidity coverage ratio of 140 percent. The bank’s robust operating efficiency, supported by continued investments in talent and technology, delivered a cost-to-income ratio of 24.3 percent.
“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 percent of our 2030 target of AED500 billion,” added Al Rostamani.
Investment banking revenues grow 22 percent
FAB’s investment banking revenues grew 22 percent year-on-year in the first nine months. Sales and trading activity in global markets also lifted revenues. In addition, strong demand in FAB’s corporate and commercial banking at home and abroad saw loans increase to AED167 billion and deposits rise to AED152 billion.
FAB also reported strong demand for personal and wealth management banking services. Consumer banking saw new-to-bank customer acquisition drive growth of 17 percent in lending and 9 percent in deposits. The bank also saw enhanced digital capabilities supporting origination and sales momentum across key products. Assets under management for private banking clients grew 37 percent year-on-year, reflecting strength in client acquisitions and new mandates.
ESG-focused financing grows
FAB’s ESG-focused financing grew in the first nine months of 2024 driven by clear client demand. Sustainable and transition financing facilitated by FAB rose to AED216 billion, or 43 percent of its 2030 target of AED500 billion. The group’s commitment to financial inclusion saw over AED900 million in new financing extended to SMEs during Q3 of 2024, taking the total to AED9 billion since 2022.
“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,” added Lars Kramer, group chief financial officer of FAB.
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