- First Abu Dhabi Bank (FAB), the UAE’s largest lender, reported a robust net profit of 4.2 billion dirhams ($1.14 billion) for the first quarter of 2024, marking a 6% increase compared to the same period last year. Lars Kramer, Group Chief Financial Officer, attributed this performance to strong revenue growth, highlighting factors such as balance sheet expansion, higher net interest margins (NIMs), and solid non-funded income.
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The bank's strong revenue generation helped mitigate the impact of the UAE corporate tax and maintain strong provision coverage levels, according to Kramer. Net interest income (NII) saw a notable 11% year-on-year increase, reaching AED 4.9 billion, supported by robust business volumes across various sectors, products, and regions. Additionally, the net interest margin (NIM) widened to 1.92%, reflecting favorable rate conditions and disciplined pricing strategies. The bank's total assets grew by 4% year-on-year, surpassing AED 1.2 trillion ($336 billion) by the end of March 2024, with customer deposits exceeding AED 800 billion and loans and advances increasing by 7% year-on-year to AED 508 billion.
Why it matters
The reported net profit surpassed analysts’ expectations, reflecting FAB's strong financial performance and strategic positioning in the market.
