First Abu Dhabi Bank’s fourth-quarter net profit climbs 63% on revenue surge
First Abu Dhabi Bank, the UAE’s largest lender by assets, reported a 63 per cent jump in its fourth-quarter net profit, as revenue increased and impairment charges fell amid continuing economic momentum in the country.
Net profit for the three months to the end of December climbed to Dh4.01 billion ($1.09 billion), FAB said on Thursday in a filing to the Abu
Dhabi Securities Exchange, where its shares are traded.
Quarterly operating income climbed 17 per cent on an annual basis to Dh6.93 billion, driven by a 12 per cent rise in net interest income to Dh4.69 billion.
Non-interest income for the period surged by an annual 29 per cent to Dh2.24 billion, reflecting strong fee generation momentum and robust client activity across asset classes. Impairment charges fell 10 per cent annually to Dh999 million.
“The UAE economy continues to be a compelling story of growth and diversification, with deepening trade ties and economic relationships,” FAB chairman Sheikh Tahnoun bin Zayed, who is also National Security Adviser and Deputy Ruler of Abu Dhabi, said.
“We have a clear strategy to deliver for our shareholders while supporting the UAE building on its position as a recognised international financial centre, a global trade hub, a nexus of innovation and advanced technology and a thriving business environment.”
Banks in the UAE and the six-member GCC bloc are benefitting from continued economic growth momentum despite geopolitical uncertainties.
Economies in the Mena region, especially oil-exporting Gulf nations, have made a strong rebound from the coronavirus-induced slowdown.
The UAE, the Arab world’s second-largest economy, expanded by 3.7 per cent annually in the first half of last year, Minister of Economy Abdulla bin Touq said in October. Last month, the UAE Central Bank raised its 2024 growth forecast for the country’s economy to 5.7 per cent, from its earlier estimate of 4.3 per cent.
The banking regulator also raised the UAE’s non-oil gross domestic product growth to 5.9 per cent and 4.7 per cent, for 2023 and 2024, respectively.
FAB said its full-year profit in 2023 hit a record Dh16.4 billion, improving by 22 per cent from a year earlier. The 12-month net profit jumped 56 per cent on an underlying basis when excluding gains from the sale of its stake in subsidiaries.
“FAB’s outstanding performance in 2023 marks the third consecutive year of higher profits, driving greater cash returns for our shareholders,” group chief executive Hana Al Rostamani said.
FAB’s yearly operating income increased by 32 per cent annually to Dh27.5 billion.
Non-interest income contributed 34 per cent to group revenue, up from 32 per in 2022, while its net interest income jumped 27 per cent to Dh18.1 billion. Total assets at the end of December climbed 5 per cent annually to Dh1.2 trillion.