First Abu Dhabi Bank reported a 12 per cent growth in net profit to Dh9.1 billion for the first 9 months. It will launch commercial banking activities in Saudi Arabia soon.
dubai — First Abu Dhabi Bank (FAB), UAE’s largest bank by assets, reported on Monday 12 per cent growth in net profit to Dh9.1 billion for the first 9 months, and said it would be launching commercial banking activities in Saudi Arabia during the current quarter.
In the third quarter, the bank recorded a more remarkable growth with a 16 per cent surge in net profit to Dh3 billion year-on-year as annualised earning per share was at Dh1.07, FAB said.
FAB’s 9-month operating income rose 1 per cent to of Dh14.6 billion as loans and advances went up 3 per cent sequentially and 8 per cent year-on-year to Dh354 billion, the Abu Dhabi based lender said in a statement. Group revenue for 9 months included opportunistic investment gains of around Dh400 million that were not repeated in 2018.
Excluding these non-recurring items, nine-month operating income is up four per cent year-onyear,” the bank said.
Abdulhamid Saeed, group chief executive officer of FAB, said the bank’s performance in the first nine months demonstrated the fundamental strength of the bank, as it grew its franchise and cemented its 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,” he said.
Saeed said FAB would continue 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 2021development accelerator programme, which will enhance Abu Dhabi’s competitiveness in four key areas: business and investment, society, knowledge and innovation, and lifestyle. With our presence across 5 continents, we are well positioned to drive economic growth and innovation by facilitating business relationships across geographies.”
FAB’s business expansion strategy continues to show promise as the bank manoeuvers to take advantage of growth opportunities abroad, said Saeed.
In Saudi Arabia, FAB completed its first debt capital markets transaction though its investment banking franchise and will be launching its commercial banking activities during the current quarter, he said. “In addi- tion, 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.”
The group CEO said alongside strong financial results, the bank is equally proud of its 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.”
In the first 9 months, net fees and commissions grew 7 per cent while high quality balance sheet and capital strength provided firm foundation for future growth. Customer deposits rose 6 per cent sequentially and20 per cent yearon-year to Dh455 billion, primarily driven by significant shortterm deposit inflows from the government
The group enjoys a strong liquidity position and remains well capitalised with total equity reaching Dh100 billion, and Common Equity Tier 1 (CET1) ratio at 13.6 per cent as of September-end 2018, the bank said. The bank’s non-performing loan ratio stable sequentially at 3.1 per cent, with strong provision coverage of 118 per cent.