First Abu Dhabi Bank (FAB), the UAE’s largest bank and one of the world’s largest and safest financial institutions, reported its financial results for the first quarter ended 31 March 2020 today.
The bank delivered a resilient performance with a net profit of AED 2.4 Billion for the first three months of 2020, down 22% from the same period in 2019 mainly as a result of lower revenue due to rate cuts and unprecedented market conditions during the period, as well as prudent provisioning in light of a more challenging operating environment. The Group focused on maintaining a robust balance sheet during the period, with strong liquidity and capital ratios, as well as healthy asset quality metrics, leveraging its inherent strength and scale to support customers and the wider community navigate unprecedented times due to the COVID-19 pandemic.
Our performance in the first quarter of 2020 was resilient despite unprecedented market conditions, globally
- First quarter 2020 Group Net Profit at AED 2.4 Billion, compared to AED 3.1 Billion in the first quarter of 2019
- Annualised Earnings Per Share (EPS) at AED 0.82, from AED 1.08 in the prior year comparative period
- Operating income at AED 4.6 Billion, 8% lower year-on-year
- Impairment charges at AED 738 Million reflect prudent provisioning due to a challenging operating environment
- Cost-to-income ratio (ex-integration costs) at 29.1%, compared to 26.1% in the first quarter of 2019
We have maintained a robust balance sheet, enabling us to continue to support our clients in tough market conditions
- Total assets at AED 835 Billion, up 14% year-on-year
- Loans and advances at AED 382 Billion, up 6% year-on-year
- Customer deposits at AED 497 Billion, up 15% year-on-year, with Current Account and Savings Account (CASA) balances at AED 181 Billion, up 12% year-on-year
- Strong liquidity and funding profile with a Liquidity Coverage Ratio at 110% as of March-end 2020
- Non-Performing Loan ratio at 3.5%, provision coverage ratio at 95%
- Common Equity Tier 1 (CET1) ratio at 12.1%, in excess of regulatory requirements