First Abu Dhabi BankFirst Abu Dhabi Bank P.J.S.C
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FAB’s Investment Banking division delivered an exceptional performance in 2021, capitalising on improving market sentiment and buoyant capital market activity in the UAE and the wider region, and successfully navigating market challenges.
The Investment Banking (IB) division provides a full range of banking products and services for institutional clients spanning various industries including government and public sector entities, Sovereign Wealth Funds, natural resources, global diversified industrials, financial institutions, and large conglomerates.
Leveraging its financial strength, sector specialisation, and extensive international network, FAB’s IB franchise is uniquely positioned to act as a core enabler for cross-border liquidity, trade and investment flows between the UAE, the MENA region and the rest of the globe.
IB’s offering includes corporate and Islamic finance, capital markets and advisory, transaction banking, trade, liquidity and cash management services along with a broad range of risk management solutions across credit, rates, FX and money market products. Using a client-centric approach, our team of experts and sector specialists help to enhance strategic dialogue to ensure greater value-add for clients, support their growth ambitions, and help them navigate an ever-changing and complex operating environment.
As we continue to build trusted relationships with our clients across our international franchise and to leverage our differentiated strengths, our ambition is to become the region’s reference institution for investment banking.
Throughout 2021, IB continued to help clients accomplish their goals by serving them through a comprehensive range of sophisticated products and solutions, leveraging specialised teams, market-leading capabilities, and an extensive international network.
IB delivered a record performance in 2021 led by 69% growth in revenue compared to 2020, primarily driven by considerable growth in non-interest income on the back of an exceptional trading performance and solid fee-generation. Profit after taxes doubled year-on-year, crossing the AED 10 billion mark.
Loans, advances, and Islamic financing increased 3%, underlining sustained momentum from our client franchise across MENA, led by Government-related entities (GREs), and an increase in cross-border activity, partly offset by the run-down of non-strategic assets. Deposits increased 13% year-on-year on the back of a robust 46% growth in CASA balances. The liquidity position remains very strong, with a loans-to-deposit ratio at 55%.
AED 12.4 bn
AED 10.3 bn
Profit after taxes
Contribution to FAB Group Revenue
AED 200.9 bn
Loans, advances and Islamic financing
AED 368.6 bn
In 2022, IB will build on the positive momentum established during its first year as a standalone business unit, capitalising on a favourable outlook and market dynamics across the region. With a significant pipeline of opportunities, IB will maintain its strategic focus and aim to deliver more value to its clients.
The business will focus on deepening its strategic dialogue with clients, particularly across key markets of the UAE, Egypt and Saudi Arabia, in order to maintain growth and market share as well as to enhance product capabilities. This includes expanding FAB’s transaction banking offering across the region, while strengthening the Securities Services business by leveraging strategic partnerships.
FAB remains dedicated to maintaining its leading position in ESG, with a robust pipeline of initiatives and programmes due for implementation throughout the coming year that will support the region’s sustainability goals for the next 50 years and its net-zero ambition.
The Bank aims to be the partner of choice in developing sector-specific and originate-to-distribute (OTD) capabilities. And to support this, FAB will accelerate the rollout of its OTD lending model, while targeting further sustainable growth in the Global Markets business.
Overall, IB enters 2022 with confidence that its unique client proposition, strong operating model, strategy, commitment to innovation and digitisation, and ambitious growth targets will reinforce its market leadership and reward the trust of its clients and stakeholders.
FAB IB reaffirmed its leadership in the market both regionally and internationally during 2021, winning several acclaimed and prestigious industry awards, including: