First Abu Dhabi Financial institution group working revenue up 44% at Dh13.6 billion

Web impairment fees have been recorded at Dh1.47 billion, up 42 per cent year-on-year, translating into an annualised price of danger at 58 foundation factors.

The financial institution’s loans, advances and Islamic financing stood at Dh483 billion, up 5 per cent year-to-date, whereas buyer deposits have been reported at Dh745 billion, up 6 per cent year-to-date.

Present account and financial savings account (CASA) balances hit at a brand new excessive of Dh333 billion throughout the interval, reflecting robust efficiency in money administration, constant development within the shopper base and financial savings propositions.

“With its sturdy fundamentals, stable monetary standing, and whole belongings surpassing Dh1.1 trillion ($312 billion), FAB is among the many largest and strongest monetary establishments globally, with a mixed credit standing of AA- or equal. Furthermore, the current score affirmations by Moody’s and Normal & Poor’s are a compelling testomony to the group’s resilience by the cycles,” mentioned Group CEO Hana Al Rostamani.

“The group’s achievements show regular progress in opposition to our development technique and strengthen our place because the monetary establishment of selection. All through the quarter and within the first half of this yr, we’ve fulfilled our dedication to delivering the very best monetary and banking services and products to our shoppers throughout our diversified franchise, whereas empowering the UAE’s standing as a world monetary hub.”

On a quarterly foundation, Q2’23 web revenue stood at Dh4.2 billion, up 7 per cent sequentially and 61 per cent year-on-year, whereas working revenue was Dh6.8 billion, up 37 per cent y-o-y. Working prices stood at Dh1.7 billion, up 3 per cent quarter-on-quarter and 9 per cent y-o-y on continued investments. Web impairment fees have been down 15 per cent q-o-q at Dh676 million.

Lars Kramer, Group Chief Monetary Officer at FAB, mentioned: “FAB posted a really robust set of economic outcomes, as evidenced by document underlying income and income each within the second quarter and within the first half of 2023. Return on tangible fairness improved considerably to 18.6 per cent, with stable capital accretion lifting Group CET1 to 13.6 per cent as of June-end 2023.”

“Group working effectivity improved considerably year-on-year, with cost-to-Revenue ratio at 25.2 per cent from 32.2 per cent within the first half of 2022. FAB continues to function from a powerful basis with a singular liquidity and funding profile, and ample capability to proceed to successfully assist our shoppers in our house market and throughout our strategic footprint. Within the present excessive rate of interest atmosphere, we’ll proceed to prudently handle danger, protect a powerful and resilient profile, and stay laser targeted on enhancing group returns.”