First Abu Dhabi Bank (FAB), the UAE’s largest lender by assets, said net profit for the first half of the year surged 3% year-on-year to Dh8.4 billion. The bank’s revenue was up 16% year-on-year to Dh15.7 billion.
Profit before tax rose by 15% year-on-year to Dh10 billion.
FAB’s performance was driven by double-digit growth across interest and non-interest income sources, supported by business momentum, an expanded net interest margin (NIM), and an improved revenue mix. Non-Funded Income (NFI) contributed 38% to Group revenue, up from 35% in H1 2023.
As of June 2024, FAB solidified its position as the largest bank in the UAE, with total assets at Dh1.2 trillion ($320 billion). Loans, advances and Islamic financing grew 6% year-to-date and year-on-year to Dh513 billion, indicating healthy demand and market share gains across key segments and regions.
In H1 2024, FAB delivered a return on tangible equity (RoTE) of 17.3%, demonstrating strong shareholder value focus. The bank maintained solid asset quality with a non-performing loans (NPL) ratio of 3.7% and a robust liquidity profile with a liquidity coverage ratio of 152%. The Group’s cost-to-income ratio stood at 24.4%, reflecting superior operating efficiency.
“FAB reaffirms its leading position in the MENA banking sector, delivering strong results in H1 2024,” said Hana Al Rostamani, Group CEO of FAB. “Group net profit and revenue reached new highs, driven by leveraging our international network, strategic partnerships, and innovation in customer experience.”
“We are pleased with our progress in H1 2024, achieving high returns and diversified growth across our franchise,” stated Lars Kramer, Group CFO of FAB. “Our strong liquidity position and high-quality risk profile underpin our robust fundamentals, supported by strategic investments and efficient balance sheet management.”
FAB reported strong performance across all business lines, with notable increases in operating income from investment banking (23%), global markets (26%), and consumer banking (16%). Private banking saw a 25% growth in assets under management, while international revenue rose 30% year-on-year.
