FAB Reports Net Profit Of AED9.2 Billion For 1st Nine Months Of 2021

ABU DHABI, (UrduPoint / Pakistan Point News / WAM - 28th Oct, 2021) First Abu Dhabi Bank (FAB) reported its financial results for the nine-month ended 30th September 2021, announcing a net profit of AED9.2 billion, up 26 percent over the corresponding period in 2020.

The revenue was up 17 percent supported by business growth, solid fee generation and strong trading performance, helping to offset headwinds from low-interest rates. Operating expenses were up year-on-year reflecting ongoing investments in digital and strategic initiatives, and the inclusion of Bank Audi Egypt. The Group’s foundation remains robust across liquidity, capital and asset quality metrics.

Hana Al Rostamani, Group Chief Executive Officer, FAB, commented, "FAB's standout performance in the first nine months of 2021, underlines the tangible progress we are making in driving our growth and transformation plans, as we continue to play a prominent role in supporting the wider economic recovery. Group net profit for the nine months grew 26 percent year-on-year to AED9.2 billion, as we achieved our highest profit to date in the third quarter, capitalising on the noticeable rebound in activity in Abu Dhabi and the wider region."

FAB maintained its status as the top-ranked regional bank across all MENA investment banking league tables during the third quarter and became the top custodian in the UAE by the value of assets, which is a major achievement underlining the Group's superior credentials.

"We were also proud to be the Sole Lead Receiving Bank on the ADNOC Drilling IPO, Abu Dhabi’s largest listing to-date, with FAB acting as, both, Joint Global Coordinator and Joint Bookrunner on this transaction, leveraging our global network to attract quality institutional investors. Looking ahead, our pipeline remains strong in a buoyant market," she added.

"We also continue to make progress against our international strategy. The integration of our operations in Egypt is on track to be completed during 2022, and we have recently received regulatory approval to establish our first branch in Shanghai, which will further expand our strategic footprint in Asia, enabling us to offer enhanced connectivity for our clients.

"With the UAE at the forefront of the post-pandemic recovery and as we enter the final quarter of 2021, I am optimistic about the opportunities that lie ahead, not only for us as a bank, but also as an engine to the Nation's ambitious vision for the next 50 years and beyond.

Our recent commitment to become a Net Zero bank by 2050 marks a new milestone in our sustainability journey, and an important step to help address the great challenges that face the world and society," she went on to say.

James Burdett, Group Chief Financial Officer, said, "We achieved a record net profit of AED3.9 billion in the third quarter of 2021, up 34 percent sequentially and 54 percent year-on-year, bringing Group net profit for the nine months to AED9.2 billion, up 26 percent year-on-year. Return on Tangible Equity also improved to 15.2 percent, up from 12.4 percent in the prior comparative period.

"Our Investment Banking business was a major contributor to the Group's earnings growth, on the back of exceptional trading performance, and sustained activity across a number of areas including Debt Capital Markets, Trade Finance, Advisory, and Equity Capital Markets where FAB continues to showcase undisputed regional leadership. We are also seeing positive underlying trends in our Corporate & Commercial, Consumer, and Private Banking businesses, with corporate and consumer confidence strengthening during the period.

"The Group continues to present industry-leading operating efficiency, delivering positive Jaws and a Cost-to-Income ratio below 27 percent, amid ongoing investments in people, products, processes, and technology. As we build for the future, these investments will continue in order to help us create new efficiencies, improve customer experience and strengthen competitive advantage.

"We demonstrate balance sheet strength across all key ratios. Asset quality metrics are stable, and the Liquidity Coverage Ratio was 124 percent at the end of September. We also maintained a solid capital position comfortably above regulatory requirements with CET1 at 13.0 percent, and our strong capital generation capacity enabled us to absorb the adverse impact of regulatory headwinds and the inclusion of Bank Audi Egypt during 2021."