FAB Reports Group Net Profit of AED 9.1 Billion, up 12% year-on-year

Third quarter Group Net Profit of AED 3.0 Billion, rises 16% year-on-year

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 nine-month period ended 30 September 2018 today.

Solid results in last quarter underpin robust nine-month performance

1. Group Net Profit at AED 9.1 Billion, up 12% year-on-year; annualised Earning Per Share (EPS) at AED 1.07; third quarter earnings at AED 3.0 Billion, up 16% year-on-year
2. Nine-month operating income of AED 14.6 Billion, up 1% year-on-year. Group revenue for 9M’17 included opportunistic investment gains of around AED 400 Million that were not repeated in 2018. Excluding these non-recurring items, 9M’18 operating income is up 4% year-on-year
3. Net fees and commissions grew 7% year-on-year

High quality balance sheet and capital strength provide firm foundation for future growth

1. Loans and advances (net) at AED 354 Billion, up 3% sequentially and 8% year-on-year, led by sustained momentum in Corporate & Investment Banking
2. Customer deposits at AED 455 Billion, up 6% sequentially and 20% year-on-year, primarily driven by significant short-term deposit inflows from the government
3. The Group enjoys a strong liquidity position and remains well capitalised with total equity reaching AED 100 Billion, and Common Equity Tier 1 (CET1) ratio at 13.6% as of September-end 2018

Industry-leading asset quality metrics, operating efficiency and improved profitability

1. Non-Performing Loan ratio stable sequentially at 3.1%, with a strong provision coverage of 118%
2. Industry-leading cost-to-income ratio (excluding integration costs) at 25.6%, continues to improve
3. Return on Tangible Equity (RoTE) at 16.5%, up from 14.3% for 9M’17

Continued progress on our integration journey, and on delivering Group strategy

1. Systems integration on track to be completed by end of 2018, subject to final testing
2. Commencement of operations in Saudi Arabia marks key milestone as the Group strategically aligns footprint in the region

Commenting on the bank’s performance, Abdulhamid Saeed, Group Chief Executive Officer of FAB, said:

“FAB’s performance in the first nine months of 2018 demonstrates the fundamental strength of the bank, as we grew our franchise and cemented our position as the UAE’s largest listed company by market capitalisation. During this period, we continued to realise our business objectives, set goals and deliver key milestones on our integration journey while maintaining a strong balance sheet with healthy liquidity, asset quality and capital ratios, thereby laying solid foundations for future growth. Alongside our strong financial results, we are equally proud of our wider achievements, including being recognised by The Banker as the region’s ‘Most Innovative Investment Bank’ for the third year running and as the ‘Safest Bank in Middle East’ for the second consecutive year by Global Finance.”

He added: “FAB continues to play an important role in advancing the economic goals of the country and in support of Abu Dhabi’s economic growth plans. We are committed to be a key delivery partner for the Ghadan 2021 development accelerator programme, which will enhance Abu Dhabi’s competitiveness in four key areas: business and investment, society, knowledge and innovation, and lifestyle. Furthermore, with our presence across five continents, we are well positioned to drive economic growth and innovation by facilitating business relationships across geographies.”

“Our business expansion strategy continues to show promise as the bank manoeuvers to take advantage of growth opportunities abroad. In Saudi Arabia, we have completed our first debt capital markets transaction though our Investment Banking franchise and we will be launching our commercial banking activities during the current quarter. In addition, we continue to grow our personal and corporate banking offerings in Egypt. We are confident that our expansion plans will enhance our regional presence and provide an important contribution to the Group and region for years to come.”