First Abu Dhabi Bank (FAB) delivered robust results in the first nine months of 2024 as increased client activity across the Group’s franchise lifted revenue 16% higher year on year to AED 23.9 billion and propelled profit before tax to AED 15.3 billion, up 15%.
Net profit rose 4% year on year to AED 12.9 billion in the first nine months and by 5% year on year in Q3’24 to AED 4.5 billion. Total assets of AED 1.2 trillion recorded growth of 5% in the first nine months, with loans and advances up 9% to AED 528 billion and deposits rising 8% to AED 820 billion over the same period.
Growth momentum in FAB’s international network continued to accelerate, with revenue rising 33% in the first nine months and assets in that client segment now representing 26% of the Group’s total.
Asset quality remained strong, with a non-performing loan (NPL) ratio of 3.8% and a liquidity coverage (LCR) ratio of 140%. Robust operating efficiency, supported by continued investments in talent and technology, delivered a cost-to-income ratio of 24.3%.
The value created for shareholders by the strength of FAB’s strategic execution produced a return on tangible equity of 17.1% in the first nine months of 2024 on track to achieve the bank’s 2024 and medium-term guidance of above 16%.
Hana Al Rostamani, Group Chief Executive Officer of FAB, said: “FAB’s third consecutive quarter of net profit growth, with earnings underpinned by robust year-on-year revenue expansion, shows clearly that our client-centric approach to strategy execution creates value for investors.
Our commitment to enhancing customer engagement and broadening relationships, across wholesale banking and personal banking and wealth management segments, has driven momentum in the Group’s performance in the first nine months of the year, resulting in a double digit growth both locally and across FAB’s international franchise. Our network remains a clear differentiator for clients and a competitive strength for the Group, supporting our strategic ambitions to expand and diversify our revenue base.
The growth in our total assets to AED 1.2 trillion highlights the key role FAB plays, as the region’s international financial powerhouse, in supporting the ambitions of our clients as they invest for the future. So does our further progress in facilitating sustainable and transition financing projects, with the total now standing at AED 216 billion, or 43% of our 2030 target of AED 500 billion.
Our investments in innovation, technology, and talent position us well to benefit both from regional economic dynamics and, more particularly, from our unique role as the UAE’s global bank supporting the country’s ambitions to grow, creating value and ensuring our continued ability to meet our RoTE target.”
Lars Kramer, Group Chief Financial Officer of FAB, added: “The Group produced a net profit of AED 4.5 billion in the third quarter of 2024, on the back of a number of important factors. Strong business momentum supported by robust economic conditions were reflected in volume growth, rising revenues and diversified income streams, as we continue to leverage our diversified franchise to deepen client relationships.
Our international franchise, in particular, has played an important role in delivering diversified sources of growth. International revenue growth of 33% year on year now sees this segment represent 22% of Group revenue.
Our credit profile remains solid with our AA- rating recently reaffirmed by Fitch Ratings, while our strong asset quality and balance sheet fundamentals position us well to navigate an ever-evolving environment.
With 9M’24 RoTE at 17.1%, we remain very well on track to deliver above 16% RoTE for FY24 and over the medium term.”
Key Highlights for Q3 2024
- Continued franchise growth across our 20-market network with 12% revenue growth in the UAE and 33% revenue growth from our international franchise representing 22% of the Group’s total, with further increases in both assets and liabilities.
- Robust growth and momentum generated in wholesale banking services. Investment Banking revenue grew 22% year on year in the first nine months; sales and trading activity in Global Markets also lifted revenue by 22%; and strong demand in Corporate and Commercial Banking at home and abroad saw loans increase to AED 167 billion and deposits rise to AED 152 billion.
- Strong demand for personal and wealth management banking services. Consumer Banking saw new-to-bank customer acquisition drive growth of 17% in lending and 9% in deposits, with enhanced digital capabilities supporting origination and sales momentum across key products. Assets Under Management for Private Banking clients grew 37% year on year, reflecting continued strength in client acquisitions and new mandates.
- ESG-focused financing driven by clear client demand. Sustainable and transition financing facilitated by FAB rose to AED 216 billion, or 43% of its 2030 target of AED 500 billion. The Group’s commitment to financial inclusion saw over AED 900 million in new financing extended to SMEs during Q3’24, taking the total to AED 9 billion since 2022.
