First Abu Dhabi Bank (FAB) reported a 6% year-on-year (YoY) jump in Q1 2024 profit to AED 4.2 billion while its revenues rose by 18% YoY to AED 8 billion, underscoring the bank’s consistent growth trajectory.
The bank’s stellar performance is evidenced by revenue that grew to AED8.0 billion, propelled by core operational growth, balance sheet expansion, higher net interest margin and robust non-funded income. The contribution of non-interest income to group revenue grew to 39%.
The double-digit growth largely offset the impact of the recently implemented UAE corporate tax.
FAB solidified its position as the largest bank in the UAE as of March 2024, with total assets at $336 billion (AED 1.24 trillion), loans at AED 508 billion and deposits at AED 803 billion.
The bank’s return on tangible equity of 17.4% is also well on track with 2024 and medium-term guidance of over 16%, underlining the bank’s focus on delivering sustained shareholder value.
FAB continues to maintain strong liquidity and robust operational efficiencies, as highlighted in its 24% cost-to-income ratio.
“FAB continues to deliver robust performance, reflected in double-digit growth in revenue year-on-year, supported by strong business momentum. This further strengthens our fundamentals, including our total asset base crossing the AED1.2 trillion threshold,” said Hana Al Rostamani, the Group Chief Executive Officer of FAB.
“Our performance is anchored in the strength of the UAE economy, and increasingly backed by the dynamism of our international operations.”
The beginning of the new financial year showed a strong performance of the bank’s core businesses and client segments. Investment banking revenue grew 26% YoY to AED 2.8 billion and corporate and commercial banking revenue increased 6% YoY to AED1.8 billion.
Global Markets revenue grew 29% YoY to AED 1.9 billion, consumer banking revenue increased 37% YoY to AED1.1 billion, and global private banking revenue advanced 12% YoY to AED 308 million.
Revenue from local operations accelerated 14% YoY to AED 5.9 billion, and international operations increased 33% YoY to AED 2.0 billion.
