FAB reports record first quarter 2019 Net Profit of AED 3.1 Billion

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 2019 today. 

Solid operating performance

• Record net profit of AED 3.1 Billion, up 6% sequentially and 4% year-on-year
• Annualised Earnings per Share (EPS) at AED 1.08, compared to AED 1.06 in the first quarter of 2018
• Operating income at AED 4.9 Billion, up 3% quarter-on-quarter and 1% year-on-year
• Operating expenses at AED 1.3 Billion, reflecting cost discipline and synergy realisation
• Cost-to-income ratio (ex-integration costs) at an industry-leading level of 26.1% 

Healthy business momentum supported by a strong liquidity profile

• Total assets at AED 733 Billion, up 8% year-on-year
• Loans and advances at AED 359 Billion, up 6% year-on-year
• Customer deposits at AED 433 Billion, up 7% year-on-year
• Strong liquidity position with Liquidity Coverage Ratio (LCR) at 117% 

A robust foundation set up for growth

• Healthy asset quality metrics with Non-Performing Loan ratio at 3.3% and adequate provision coverage at 106%
• Solid capital position, following a record dividend pay-out, with fully phased-in Basel III Common Equity Tier-1 (CET1) ratio and total Capital Adequacy Ratio (CAR) improving to 12.7% and 16.0% respectively 

Abdulhamid Saeed, Group Chief Executive Officer of FAB, said:

“Building on the positive momentum generated last year, FAB achieved a solid performance during the first quarter of 2019 with a record net profit of AED 3.1 Billion, delivering a unified customer experience through our integrated platform and placing us firmly on track to execute our 2019 strategic agenda. Increasing our foreign ownership limit to 40%, which was approved by shareholders in February and implemented this month, was a notable milestone supporting higher liquidity on our shares and attracting further international investment.”

“Our performance during the first three months of 2019 has created a robust foundation for sustained growth momentum and we remain optimistic about the remainder of the year. Our successful integration and solid fundamentals have enabled us to improve our profitability, while continuing to prudently manage risk across our portfolios. As we move into the second quarter, the bank will continue to leverage its competitive advantages, while further developing our retail offering and strengthening our market-leading position in corporate and investment banking.” 

He added: “As the UAE’s largest bank, we are committed to aligning with key government priorities and to supporting local communities to grow stronger, which is exemplified by our involvement in initiatives like the Ghadan 2021 development plan and the Abu Dhabi Social Support Authority programme for low-income Emirati families. Through working with private and public sector organisations, FAB will continue to solidify its status as an engine of growth for the UAE and the region, while continuing to focus on meeting our medium term aspirations.”